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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Eva who wrote (9839)	5/29/2005 4:45:48 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

Hi Eva, hard to say, the non-E&P parts of Energem are quite profitable now but the "environment" changed, sort of dropping the bottom underneath the junior oils. That prompted me to sell it.. look at FAO.L and how it's performing, not too great (ENM.TO owns 51% of First African Oil...) plus the negotiations with the India/China groups are ongoing.. OTOH they have recurring cashflow from diamond mining in Sierra Leone, Ethanol production in KEnia, diverse midstream petroleum assets in Africa that might be developed into something big one day .. Let me sum up : the diversification and earnings make it less risky but their big stealth factor here, their 51% stake in FAO.L just dropped thru the floor (from 15p to 11p - that's a 30% chopping of the latter's marketcap in one month) I say this is an average situation. Longterm very attractive but shortterm the current valuation is carried by the talks on their upstream assets. Should that disappoint, expect weakness for some time.. sorry to be not much help here CROSSY