Wednesday tips round-up: Falkland Oil&Gas, Redrow

Oil exploration is a speculative affair but in the South Atlantic it can be particularly expensive, even when successful given the dearth of local infrastructure and the logistical costs involved. Nevertheless, analysts at Peel Hunt believe Falkland Oil&Gas's upcoming exploration programme could be worth a total of 48p under a positive scenario, writes The Daily Telegraph's Questor column. Over 240 days towards the first half of 2015 the company will drill six sites. That follows two major disappointments in the area in 2012, at Loligo and Scotia, since when the stock has been moving in a broadly sideways fashion. They have fallen by over 80% since early 2010.

Oil exploration is a speculative affair but in the South Atlantic it can be particularly expensive, even when successful given the dearth of local infrastructure and the logistical costs involved. Nevertheless, analysts at Peel Hunt believe Falkland Oil&Gas's upcoming exploration programme could be worth a total of 48p under a positive scenario, writes The Daily Telegraph's Questor column. Over 240 days towards the first half of 2015 the company will drill six sites. That follows two major disappointments in the area in 2012, at Loligo and Scotia, since when the stock has been moving in a broadly sideways fashion. They have fallen by over 80% since early 2010.

Admittedly, investors are now only valuing the shares at about 31p, as a function of its $151.4m of cash on hand. The next key date for the firm is the upcoming sale by Premier Oil of its stake in the Sea Lion field, which is located in the same geographical area. Investors should watch out for any oil majors buying into the programme ahead of next year. Highly speculative but still worth buying, Questor says.

Homebuilder Redrow continues to reinvest its earnings into the company, instead of splashing out on dividends, as many of its peers. In particular, the founder and chairman continues to concentrate on purchasing land at post-crash prices. Hence, the company continues to expand, as its latest full-year figures revealed.

Completions rose by 27% while average selling prices increased at a 18% clip. Excluding the London effect revenues were up by 25%. Worth pointing out, the company continues to be confident enough as regards the prospects for the southeast. Even should it overheat what needs to be highlighted is that Redrow is selling to ordinary commuters to London, not investors and oligarchs. If you want income then certainly, you want to look elsewhere. Nevertheless, more capital growth can be expected from Redrow in due course, The Times's Tempus says.

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