Is Serica Energy(SQZ) - Being Overlooked?
DIY-Investors Inner Circle Members will be aware that I've mentioned Serica Energy before (See Part 2 of the Post from 7th June 2016), however, for those that like following trends, now might be a good time to take a fresh look...
As you can see from the graph (below), SQZ has had a good twelve months - breaking through the 200 day moving average and more than doubling in price.
Graph (SharePad - intra-day [16th Nov. 2016])
However, there are a few reasons why I think that Serica Energy may be worth a fresh look, such as:
- The OBV has stayed consistently strong over the past twelve months, not falling back as the share price has retreated periodically.
- The RSI is now towards th eoversold end of its range (at its lowest for more than 12 months).
- There seems to be a strong uptrend developing in the200 day moving average, mirroring the support line that I've added (in blue) on the graph.
Key Metrics
Key points to note, from the Key Metrics include:
- Low PE (3.1[h] and 4.9[pr])
- Rising Turnover (PSR still below 3)
- Positive ROCE (23%) last year
- Profits forecast to grow from £2.92m to £4.25m
- Free Cash Flow of £2.26m last year (77% of the pre-tax profit)
- No borrowings
News-Flow
Following pipeline disruption earlier in the year, oil and gas production from the Company's Erskine field resumed in early September.
As ever, DYOR!
Mick (16th November 2016)
