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Hurricane Energy: still a buy after Crystal Amber Fund backs off?

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Sighs of relief perhaps in the Hurricane Energy [LON:HUR] board room as largest shareholder Crystal Amber Fund [LON:CRS]  (which owns 30% of the company) dialled back on its demand for a major board reshuffle. The activist investor had requisitioned a general meeting to vote on sale proposals put forward by management.

Long term shareholders in the company have to wonder: the stock has never really recovered from a slump that started in November 2019 and took it from over 60p to languishing in the penny stocks basement for months, during one of the biggest energy booms of a generation.

Buyers of the oil company are right to be interested. Sophisticated peer analysis carried out on Hurricane Energy by Deshe Analytics sees it as fundamentally still in good shape. Hurricane Energy's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth. In terms of liabilities, Hurricane has published good numbers. Buyers who have expressed an interest in the company are likely to capture it at an excellent price based on this analysis.

But much depends on the sales process in which Hurricane is now involved, with several offers reportedly received earlier this month.


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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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