White Energy Shares Rebound from Oversold Levels

Report Date: 22 July 2011

Analyst Details
Company: Madison Williams and Company LLC
Analyst: Asit Sen and Lee McMillan
URL: http://marketing.madisonwilliams.com/WhiteEnergyResearchReportJuly222011.html

Summary

White Energy shares are up 27% this week at A$2.36 following a sharp but steady decline after peaking (at A$4.19) in October of 2010. It is fairly well understood by investors that the decline since late last year was mainly driven by circumstances surrounding the company’s failed A$486mn Cascade transaction in Australia. We believe the recent rally can be attributed to three main reasons: 1) an oversold condition, 2) recent insider buying, and 3) some market chatter surrounding White Energy as a name participating in Australia’s coal sector consolidation trend (a view that we do not subscribe to).

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