Evil Diaries: Erroneous market valuations

1 mins. to read
Evil Diaries: Erroneous market valuations

Chariot (CHAR) today announces a big increase in reserves at Anchois-2, its offshore Morocco gas prospect. There has been hardly any effect on the share price, now 20.7p.

Curiously, its broker, Cenkos, whose staff I respect, have today opined a 63p “target price”. This seems wrong to me. Surely they mean that the valuation which applies right now is 63p. The fact that the price has not danced up to meet this figure is through market conditions.

It remains possible that the price will go far higher. Such a figure should be described as the target price.


It is possible that Tim Warrilow of FeverTree (FEVR) knows more than he has so far disclosed by RNS (though why such information, if material, should be suppressed I have no idea). But he has invested about £1m at c. 870p and must therefore be relieved that the price has recovered to more than 1000p.

But I suspect that even though he has been joined by his fellow directors (albeit to a much more modest degree) buyers are whistling in the wind. The truth is that FEVR is valued way over £1bn and is on a PE of perhaps 30 when prospects are declining. Tangible net asset cover is nothing to write home about and, therefore, FEVR remains a stonking short.

Comments (1)

  • philip baker says:

    REA, the Indonesian government are trying to prove that there is nothing so bad that governments can not make worse.
    One day you can not export any palm oil, then the tariffs go up, then because there is an over supply in the home market they remove half the tariffs for a few weeks.
    The reverse of what i was expecting to happen to the palm oil price has happened after each piece of news.
    RE.A preference still look good value at 100p. The Ordinaries could become great dividend payers once the deficit is cleared on the preference.
    I do hope the management start to clear as much expensive debt as they can before the next downturn comes, otherwise they could struggle in the future. I have far to many of the preference shares making up my pension income.
    Always keen to hear your thoughts on REA and other shares

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