Being currently valued on its current production, Maurel appears at first sight to be a very attractive stock; however, caution needs to be exercised because exploration failure has occurred in the past. Also, we note that attractively priced paper is available currently in the secondary market and being exposed to such a small issue requires good visibility on Maurel’s future earnings – something which is not there, in our view.
Archive for the ‘Convertibles’ Category
CB Issuers most exposed to non European countries
On July - 2 - 2010
Reining in Europe’s deficits will obviously limit growth for a sustained period of time as solving governments’ solvency issues will require at least three to four years.
Companies with a significant exposure outside Europe will benefit both for a currency aspect (competitive and currency conversion impact) but also because of boosts to top line growth from the relatively faster growing economies of Asia and the Americas.
The list attached is combining issuers with European exposure below 60% of their total income and a Delta above 20%.
Theolia Capital Increase – Impact on Oceane
On June - 25 - 2010
THEOLIA, as indicated during its General Meeting on June 1, 2010, enters the last stage of its financial restructuring by launching a capital increase for an amount of up to 60,463,059 euros through a rights offering The primary
purpose of this capital increase is to allow THEOLIA to reinforce its equity capital in the context of the restructuring of its convertible bond (OCEANE).
Unibail into Gecina switch Idea
On June - 22 - 2010
As growing unemployment rate in Europe is still weighting on office demand, we have, to say the least, no conviction at all regarding the sector. Actually, the trend of occupancy rate is still down hampering REIT’s pricing power.
Nevertheless, as economy is picking up it may make sense for some investors not to wait for all the green lights. Should you be exposed, we would advise to switch fom Unibail to Gecina. The yield gap for the two convertible bonds is 5.55% ! A number unjustified by the delta difference and the annualized premium (4.7% for Unibail and 5.6 % for Gecina).
