SALAMANDER ENERGY (SMDR): CHART AND DISCUSSION THREAD

Tipped in todays edition of The Independent on Sunday.

Salamander Energy

After a strident 2006, top-flight prices are looking rather bloated, so it pays to investigate further down the food chain.

Salamander does not, however, lurk in the darker recesses of the Alternative Investment Market (AIM); earlier this month, it became the first oil and gas company to float on the main list for three years. Since then its shares have moved only marginally, but that shouldn't be a deterrent. After all, look at some of Salamander's early investors: the blue-chip private equity firm 3i and Irish racing tycoon JP Magnier, who made £40m on the float. Run by well-regarded industry executives, Salamander focuses on South-east Asia, where there are few pure exploration and production players. Production levels are already close to 6,500 barrels a day, while reserves are around 14 million barrels. Of course, with any energy minnow there's always a risk they will stay just that. But just look at what has happened to Cairn Energy.

Abigail Townsend