A genuine value play, the subject of our latest IC Alpha equity research report is a junior oil producer that has been shunned by investors thanks to legacy balance sheet issues. The company is now debt-free, however, and the market hasn’t cottoned on to the substantial discount the shares are offering below net asset value (NAV).
With its vastly improved cash position, the company is poised to increase production and there is potential for operating profits to more than treble over the next two financial years. This is simply not in the price and the shares make for a compelling opportunity at this depressed level.
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