Wednesday tips round-up: Xcite Energy, Countrywide

7th May 2014 07:09

Large reserve estimates are great, but there is quite a gap between that and actually getting the black stuff out of the ground. Even so, independent North Sea oil explorer Xcite Energy yesterday took one step closer to that goal. The company announced that it will share field-specific information with Shell and Statoil for the evaluation of its Bentley heavy oil field. Furthermore, they will share infrastructure, assets and operational solutions to develop the field. The above sent stock in the company rocketing 29% higher. Shares in the company are not for the faint-hearted, having traded in a wild range since 2011. Nevertheless, those with a healthy risk appetite for the risks which remain could benefit if the data is positive, says The Daily Telegraph's Questor column. The country´s largest chain of estate agents, Countrywide, continues to be confident on the recovery in the housing market. The firm projects that the market will expand by 10% to 15% this year and that its own numbers may come in at the top end of forecasts. In the period to the bank holiday total income expanded by 35% to £157.1m, or by 21% if Lambert Smith Hampton, the unit purchased last September, is excluded. That came despite the introduction of the Mortgage Market Review a fortnight ago, requiring lenders to ask many more questions about borrowers' finances. If anything can derail housing it would be that. Even so, estate agents are the ultimate cyclical business, as the shares' strong performance shows. The stock came to market at 350p last spring and now trades at about 14 times earnings. This is not the moment to go short the sector, but that valuation looks fair enough and up with events, says The Times' Tempus. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB