Tuesday, 13 April 2010

Falcon Energy



look for break above 75c(200 day MA resistance) to hit 80c level ... very good support at 70.5 to 72.5c area

i reproduce the following report from KE :

Falcon Energy (FALE SP) - Spreading its wings

§ FEG operates one of the world's largest fleets of work/ accommodation barges, which serve as vital workstations for offshore production rigs. Its recent acquisition of a 29.1% stake in CHO is a good strategic move, bringing with it a younger deepwater AHTS fleet and new clientele in Latin America and Australia. We are initiating coverage on FEG with a BUY recommendation and target price of $0.99.

§ We expect FEG to double its earnings by FY12 as it pursues fleet expansion and embarks on new Mid-East oilfield projects. Our target price of $0.99 is pegged at an undemanding 11x FY11 PER or 0.4x PEG. This leaves room for re-rating on the successful execution of its expansion plans and integration with CHO.

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