Shares to buy, hold and sell

Paul Marriage is manager of the Cazenove UK Smaller Companies fund. With strong performance, up 26.6% over one year and 72.3% over three, the fund has

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Monday's oil and gas news: Magnolia strikes oil in Oklahoma

Magnolia Petroleum, Xtract Energy and President Energy all updated investors on Monday. Read on to see what they had to say.

Magnolia Petroleum issues Oklahoma drilling update

Magnolia Petroleum (MAGP) on Monday confirmed that hydrocarbons had been encountered in the Roger Swartz #1 vertical well in the Mississippi Lime formation, Oklahoma.

The well had been drilled to a total depth of 5,180 feet, logged and casing has been set to a depth of 5,000 feet.

Testing was underway to determine production capabilities and/or the economic feasibility of further fracturing or stimulation of these zones.

"The company's disclosure that its most recent well, intersecting Oklahoma's Mississippian Lime is a significant step forward on two counts: (i) that the company has intersected a new potential hydrocarbon source; and (ii) that this marks a departure to a more direct operatorship, both a positive for the company," commented analysts at FoxDavies.

"Ultimately, further testing will be required before the well can be deemed anything more than a technical success, but as first steps go, this is a pretty good one."

Xtract Energy slims down

Xtract Energy (XTR) has announced the disposal of its Australian and Moroccan shale assets for an overriding royalty.

The company talked of a "strategic alignment" of Xtract's interest in Julia Creek in Queensland, Australia with Global Oil Shale Group (GOS) as an investor and developer for the deposit.

Under the terms of the agreement, Xtract will assign its oil shale rights in Julia Creek to GOS in exchange for a strategic equity stake in GOS of six million shares on signing the share purchase agreement and satisfying all closing commitments. Xtract will receive a further maximum of 1.5 million shares in GOS in the event of its planned initial public offering, a long-term interest in the Julia Creek project through a 1% net smelter royalty and an initial cash payment of AU$50,000 (

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Where to go for growth and avoid pitfalls in 2013

Investors looking for clear ideas on where to invest in 2013 and beyond should keep in mind three important themes: that quantitative easing (QE), dubbed the greatest financial experiment in history, is ongoing and its results are not yet known; that income has become very expensive to extract from many assets, particularly bonds; and that some stockmarkets, especially China, have become historically cheap.

We will also need to keep an eye on the actions of politicians and policymakers this year. The global economic background remains challenging: experimental (or perhaps increasingly desperate) measures - from Washington and Tokyo to Brussels and London - will continue to be used to get credit flowing again, kick-start anaemic economic growth and shore up the eurozone.

Will inflation be benign or damagingly high? Will interest rate expectations start to rise in 2013? Can we look forward to normal, higher levels of economic growth or more years of austerity-driven weakness? Is the global financial system on firmer foundations or are the tough decisions still being kicked down the road?

We cannot be sure what effect all of the unconventional, experimental measures that are being adopted will have, but it's safe to assume that we won't know all the answers in 2013.

Money Observer's Wealth Creation Guide should not, therefore, simply be viewed as a compendium of tips for 2013 alone, but as an analysis of the current and potential future state of financial affairs and how you might want to factor some of the resulting investment ideas and themes into your own wealth creation, or preservation, strategy.

Certainly the most compelling theme for me is just how expensive income has become. Put another way, investors are not being adequately rewarded for the risks they are taking by investing in particular asset classes, chiefly bonds. The chart below shows the 20-year range of yields on various assets, with the yellow dots indicating where, worryingly for bond investors, they are now.

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Markets: FTSE 100 closes in the red on Monday

Mon, 17/12/2012 - 17:10

Interactive Investor's Market Report brings you bite-sized news covering all the day's FTSE and AIM announcements, the latest on commodities, global and domestic economics, gold, oil and currencies as well as US markets. Updated throughout the day, it's the digest you can't afford to miss.

Last updated: 17:10

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What's in store today...

We will find out on Tuesday whether a little Christmas cheer can be delivered in the form of a fall in inflation, and Keller Group (KLR) will release a pre-close update.

Recent news: Keller's November interim management statement indicated strong trading in the four months to October. Progress was being driven by its North American operations which was benefiting from "gradual improvement in construction markets". Asia was also trading well, Australia was ahead of last year and emerging markets were resilient.

Analysts' expectations: "While many of its end markets remain difficult, early action on costs and improving efficiency is working. We expect confirmation of a good year with the pre-close update. We also upgrade our forecasts and target price to reflect this improvement," say analysts at Panmure Gordon.

"Following the November interim management statement we belatedly update our forecasts. Our new 2012 full-year pre-tax profit is

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Edmond Jackson's Stockwatch: BG Group

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Near a recent two-year low, do the FTSE 100-listed shares in integrated natural gas firm BG Group (BG.) qualify yet as a contrarian investment? The price has plunged just recently by over 20% due to a warning of flat 2013 production which jarred against expectations of growth. This shows investors must beware complacency towards so-called "blue-chip" shares; any business can suffer an interruption to progress, especially in resources and where operations are widespread internationally.

In response, some brokers' analysts have downgraded while others are more positive with the price around 1,030p. This is a slight recovery on a recent low of 1,001p, if well down on a 1,547p high during the early 2012 "risk rally". Most of these analysts target prices well over 1,300p although, bear in mind, brokers' very existence is to promote stock and some have been caught with their pants down - recommending BG at higher prices - so there's a credibility aspect to reiterating 'buy'.

From a macro view it is indeed worth watching BG more closely now. Any utility bill payer should know how rising prices point to energy supply issues, which make BG a vital company in the long run. If stockmarket investors are going to fret over a slip in performance then other big operating companies may exploit this for a takeover. BG emphasises that production is not being lost but deferred to future years, except in Egypt where there has been a fall in gas output. Well, any big international resources firm faces such risks. Other BG projects, such as in Brazil and Australia, remain prized.

BG's international spread, with about 80% of last year's revenues outside the UK, can also be seen as a virtue to help protect a portfolio against long-term sterling weakness - now credit rating agencies are threatening to downgrade the UK as the coalition government fails to get a grip on public borrowing and spending.

So these macro themes of essential resources, long-term energy supply and hedging against sterling are useful for portfolio investors to protect their wealth. What is less comforting is when you consider specific aspects of BG's financial profile.

BG Group financial summary
Consensus estimateYear ended 31 December
2007200820092010201120122013Turnover (

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Colorado marijuana legalization task force meets for first time Monday

Font ResizePoliticsBy John Ingold
The Denver Postdenverpost.comPosted: 12/17/2012 08:28:15 AM MSTDecember 17, 2012 5:39 PM GMTUpdated: 12/17/2012 10:39:28 AM MST


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