MCW Energy Group Limited
MCW Energy Group Limited: FIRST BERLIN INITIATES COVERAGE ON MCW ENERGY GROUP WITH A ‘BUY’ RECOMMENDATION AND A PRICE TARGET OF EUR1.10
MCW Energy Group Limited / Key word(s): Research Update/Forecast FIRST BERLIN INITIATES COVERAGE ON MCW ENERGY GROUP WITH A 'BUY' RECOMMENDATION AND A PRICE TARGET OF EUR1.10 December 12th, 2011: Shediac, N.B., Canada/Frankfurt, Germany: MCW Energy Group, a Canadian holding company involved in oil production/distribution and oil sands recovery technology today announced that First Berlin Equity Research has completed a comprehensive research report on the Company with a 'Buy' recommendation. MCW Energy Group shares trade on the Frankfurt stock exchange open market. First Berlin's research report recommends MCW Energy Group shares as a 'Buy' with a speculative risk rating. The target price implies investor returns of up to 83%. First Berlin's report goes on to state, 'Provided that continuous production can be achieved, we believe MCW Energy's oil sands extraction business has the potential to achieve gross and EBITDA margins of 57% and 32% respectively. Sourcing oil inhouse would also allow the fuel distribution business, MCW Fuels, to widen its margins. Our DCF valuation model suggests a valuation of EUR1.10 for the stock. A successful start to oil (sands) production in Utah in early 2012 should quickly see the shares reach our price target.' The First Berlin report further states, 'The assessment of MCW Oil Sands Recovery LLC's technology carried out by the well known Canadian petroleum engineering consultant, Chapman Engineering, suggests that MCW has made great progress in addressing the challenges represented by the extraction of oil from Utah's oil-wet sands. On our forecasts, which are an extrapolation of MCW's own three year business plan, but also incorporate a second 10 hour per day production unit from 2014, the lease reserves (50+ million bbl – U.S. DOE) should be sufficient to support production by the Company until 2017/18.' MCW Energy Group expects that the linking of its oil production with its fuel distribution network will provide advantaged pricing, higher profit margins and enhanced returns to its investors. 'The price level of EUR1.10 for MCW Energy Group's shares is adequate in our opinion. This has now been confirmed by the report of First Berlin's research analysts. Overall, we currently see the shares as being significantly undervalued.' stated Dr. R. Gerald Bailey, new Chief Executive Officer MCW. First Berlin's Research Report on MCW Energy Group is available in English on the corporate website: www.mcwenergygroup.com.
First Berlin Equity Research
About the MCW Energy Group: For more information, please visit the corporate website: www.mcwenergygroup.com
Press Contact: North America The information does not constitute an offer of or an invitation by or on behalf of MCW Energy Group or any of its subsidiaries to subscribe for or purchase securities of MCW Energy Group or any of its subsidiaries, but is provided as a matter of record only. In particular, the information contained does not constitute an offer of securities for sale or solicitation of an offer to buy securities in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. End of Corporate News 12.12.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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