Shares in independent power producer Alkane Energy (ALK) soared by a sixth following news that a major international oil company, Total, farmed in to early stage UK shale gas licences, not dissimilar to nearby licences held by Alkane.
IC TIP:
Sell
at
49p
We advise readers take this opportunity to sell into strength as Alkane's shares, at 49p, now appear close to being fully valued. Broker Liberum has a fair value estimate of just 44p a share for Alkane's core coal-mine-methane business, leaving only minor upside on the table for Alkane's nascent shale gas licences. Management also confirmed in a recent trading update that results for the year ended 31 December 2013 will be "in line with market expectations".
