Almost 7% of Bowlevens float now turned over. smoke signals get stronger as stock rises back towards days highs…

UPDATE – In excess of 5% of the company’s stock turned over so far and, we understand, working buyers in the background. This type of volume is generally always the precursor to news (seems the FSA just cannot crack down on leaks no matter how hard they try, someone is always looking to trade and take their chances…). The volume seems too high for a pump and dump story and I wouldn’t be surprised to seel some type of farm in our even the much hoped for bid announcement later today. The press will no doubt alight on this and speculate on reasons over the weekend.

The volume above speaks volumes to me (if you’ll excuse the pun!) – we covered the stock in our Oil Explorers Dream portfolio in this months edition (http://issuu.com/spreadbetmagazine/docs/spreadbet-magazine-v6_generic) and so do not need to opine further on the latent value embedded in the stock at this price. Our Conviction Buy of 3 weeks ago at 59p stands and we personally believe the stock should have a 1 if not a 2 in front of the 69p. 

If there is any substance to the revived Tullow Oil rumours we would expect that Tullow will move quickly and not make the mistake of Dragon Oil in allowing the stock to rebase at a substantial premium to the price that initially attracted the interest and so set investor expectations highly again. 150-170p would be a figure that would likely tempt the institutions, particularly those that participated in the placing last year around 100p.

The medium term chart below looks to pressage a move to 100 – 110p shortly too with a clear wedge break evident.

Editor