4044 days ago
I reviewed FTSE 250 oil and gas explorer and developer Cairn Energy (CNE) on 19th March when it released calendar 2012 results. The shares have subsequently drifted back slightly, to my surprise as I see real value here, but there has been some interesting recent boardroom interest in the shares which I take to mean that I am not alone in my analysis. Those who really should know agree.
4059 days ago
Cairn Energy (CNE) served up calendar 2012 results today and as oil and gas companies go this has to be the easiest stock going to analyse - it looks a nil brainer if dull share tip. What I refer to is the clear tangible net asset backing. At 279.4p the market capitalisation is £1.693 billion but have a look at the asset backing.
The 2012 numbers are pretty irrelevant. The highlight of the year was a return of $3.5 billion to shareholders following Cairn’s sell down of its stake in Cairn India, which is listed in India. For what it is worth the profit after tax was $73 million. This is all a far cry from my days as a graduate trainee oil analyst in the early nineties when the company’s house broker, for whom I then worked, put out a note on Cairn at 7p headlined “not bust yet.”
