News that the vampire squids “anal”ysts slapped a conviction sell on ABG today had me not just coughing over my cornflakes this morning, but literally fainting into them. Shock is not the word – utter disbelief. For those unfamiliar with just how cheap this stock is, check out the last edition of our mag here on page 18 – http://issuu.com/spreadbetmagazine/docs/spreadbet_magazine_v15_generic
The squid has, amazingly, put a 100p target on the stock. That would put the stock on around just a 40p premium to its last reported net cash and around 1.4 times EBITDA for 2014. As for the EV/resource base… don’t even go there!
To the Goldman analyst who put this out – email me at editor@spreadbetmagazine for a lesson in how to analyse a cheap, very cheap stock.
The last time we went mano-mano was on ENRC at Xmas (see here – http://www.spreadbetmagazine.com/blog/a-reminder-of-sbm-v-goldmans-and-why-you-should-never-ever-e.html) and the stock took off by almost 50%!
We could not have wished for a more contrarian Buy signal than that for the longs of ABG. Cheers lads!