Last week Nighthawk shares fell around 25% after the company’s founder and managing director David Bramhill retired from the board with immediate effect.
The company’s commercial director Tim Heeley has stepped up to take the position.
“Sure, investors reassess their holdings in light of new news. But do these changes warrant a 25% sell off in the stock?” Nolan said. “In our opinion this looks more like investor capitulation.”
The broker noted the company’s prospects at the Jolly Ranch gas shale project, where reports from Schlumberger and Gaffney Cline are due shortly.
“Nighthawk’s assets support a much higher price and a 25% sell off is unwarranted ... The reserve report is a clear value catalyst coming up in the next few months.”
Since last Wednesday’s announcement the stock dropped for three straight days to reach a low at around 13.2p, however today’s session has already seen Nighthawk bounce back to reach over 16p per share.
The broker noted the company’s prospects at the Jolly Ranch gas shale project, where reports from Schlumberger and Gaffney Cline are due shortly.
“Nighthawk’s assets support a much higher price and a 25% sell off is unwarranted ... The reserve report is a clear value catalyst coming up in the next few months.”
Since last Wednesday’s announcement the stock dropped for three straight days to reach a low at around 13.2p, however today’s session has already seen Nighthawk bounce back to reach over 16p per share.
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