Horizon Oil has been downgraded in the most recent PortfolioDirect investment report despite progress on permitting the Stanley wet gas field
John Robertson
PortfolioDirect
Horizon Oil has been downgraded in the most recent PortfolioDirect investment report despite progress on permitting the Stanley wet gas field. The proposed merger with Roc Oil is the primary reason for the rating change. The rating process places a heavy reliance on future positive value momentum. The previously anticipated upward move in the Horizon valuation appears likely to fall short of the offsetting downward move in the Roc Oil valuation leaving the combination without the necessary positive value uplift required by the rating criteria. There is also an opportunity cost risk. After reaching near term peak production during 2014, the merged company faces a lengthy hiatus as it waits for its longer term growth plans to materialise in higher earnings and a stronger value profile.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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