After dropping as low as 84p pre-Christmas, buyers appear to be returning to Xcite Energy shares once again with the price back above 100p this morning – an increase of nearly 10%, and a 25% rise for those fortunate enought to dip back in at the lows at the end of 2012.
Nothing concrete behind the rise except for talk of a technical breakout and a solid rise in the oil and gas sector, but news on the new Reserves Report and CPR can’t be far away. As highlighted in this month’s Spreadbet magazine, Top 3 oil picks for 2013 (Link here, page 48 -http://issuu.com/spreadbetmagazine/docs/spreadbet-magazine-v12_generic), Xcite Energy offered compelling value at just over the 92p level when it was recommended. At around £1 the upside potential is signficant versus the downside risk given the news flow expected in the first quarter of 2013.
Even if this is a storm in a teacup for the day….an encouraging start to 2013 for frustrated Xcite Energy shareholders nonetheless!
Contrarian Investor UK