Well its Friday again folks. Not a bad day overall on the markets or with the weather for that matter and not long to go until my holidays, just 2 weeks, more on that later. I have already been to the gym today, working on my shoulders and biceps today. It was very tough I can tell you, my trainer has no symphony for me! Also, have a read below all the usual ‘waffle’ I have listed 10 stocks that are undervalued and could make some decent money this coming summer and beyond into autumn.


Every Wednesday The Footsieblog reports on “Invest my £1000” although today is not a Wednesday some important news has occurred. This is a statement from the RNS released this morning:

Hardman Resources Ltd and Tullow Oil PLC reported positive test drilling results from their 50-50 owned Waraga-1 Oil Discovery in Uganda. They said initial results show a flow rate of about 1,500 barrels a day of 33.8 degree API oil. Hardman chief executive Simon Potter said the programme in Uganda "has delivered three discoveries in the first three wells and now the first oil flow not only for Uganda but also in East Africa, south of the Sudan."

This is excellent news for our holding in Tullow Oil (TLW). Therefore the stock currently stands at the following:


The stock today is up 5.61% at 353.25
The stock since the purchase is now down 5.2%.

The total amount since the purchase is now down £52.00
The total amount in the pot to date is down to £948.00


Although this is not brilliant news as far as the figures go, it is a start in the right direction. Maybe this coming Wednesday we shall be in profit. Poor Keith can let go of the arm of his chair now.


The FTSE100 is currently up just 2.3 points at 5,686.4 with the FTSE250 down 13.8 points at 9,210.3 and the FTSE Smallcaps up 3.6 points at 3,331.

Volume is thin on the ground with just 743.6 million shares trading in 44,019 deals.


Today’s look at individual Stocks:


Heavyweight oil issues remained a key support today after Deutsche Bank upgraded earnings per share estimates across the board by about 20% on the back of increased crude assumptions.


The broker also raised its price targets for oil majors by about 5%-7%, arguing the sector now looks 'significantly undervalued'.


The main beneficiary was BP, up 9.5p at 614.5p after the broker increased its price target to 800p. Shell was also up 27p at 1,822p, after being upgraded to buy from hold with an increased price target of 2,100p from 2,000p.


In a note to its clients, Deutsche Bank also lifted its price assumptions for west Texas intermediary oil to $62 per barrel in 2007 from $50, and $55 a barrel in 2008 from $45. It increased its long-term expectation for west Texas intermediary to $45 per barrel from $40 because it believes economic growth remains robust and there are few signs of the geopolitical price premium dissipating.


As above Tullow Oil climbed 14.25p to 349p after brokers welcomed positive drilling news. Merrill Lynch found the update encouraging, noting that the high flow rate was achieved naturally, and reiterated its buy recommendation.


Persimmon is currently up 23p to 1,216p, after Morgan Stanley upgraded its stance to equal-weight from underweight on valuation grounds. The broker said that in the near term it sees Persimmon finding support with better than expected house price inflation sentiment.


Man Group was also lifted by positive broker comment, rising 28p to 2,499p, as Bridgewell Securities recommended investing in financials after the recent downturn, and noting the stock at current levels looks extremely attractive.


Sage was another riser, up 2.5p at 224.25p, after Oracle said its Q4 profit rose 27% on record revenue and that sales surged across most of its business lines and geographic regions.


The UK gas sector was in focus after Russian gas supplier Gazprom made its long-expected move into the UK retail gas market by snapping up Cheshire-based Pennine Natural Gas. Gazprom is expected to increase its presence within the UK retail gas sector through further acquisitions in the coming months.


On the downside, BHP Billiton lost 17p at 983p after increasing its holding in Skye Resources to 16.5%, or almost 4.85 million shares, after buying 2 million shares.


AB Ports was 31.5p higher at 912.5p after the UK port operator confirmed its board had recommended a revised 910p a share offer from a consortium led by Goldman Sachs, the US investment bank. The offer values ABP, which operates 21 UK ports accounting for nearly a quarter of the nation's seaborne trade, at £2.795 billion.


10 stocks that are undervalued and worth holding


Tullow Oil (TLW)
Burren Energy (BUR)

Wolfson (WLF)
Sondex (SDX)

CSR (CSR)
BP (BP.)

Hunting (HTG)
Dragon Oil (DGO)

Carphone Warehouse (CPW)


A risky but very undervalued stock:


Victoria Oil and Gas (VOG)