Tuesday tips round up: Rockhopper, Esure

The Times’ Tempus said it is hard to see any upside in oil explorer Rockhopper.

The above column said Rockhopper’s latest buy, two concessions in Egypt, seems a sensible deal.

Rockhopper is getting a good price, Tempus said, and the acquisition plus its producing assets in Italy would fund the company’s running costs going forward.

Tempus’ advice was to avoid the stock as it was hard to see upside to the deal.

Meanwhile the Financial Times’ Lex said insurer Esure was in a very tough business.
UK Motor insurance is an awful place to be in, Lex writes, as price comparison websites keep a lid on premium rates.

Esure’s shares dropped by 10% yesterday off the insurer’s first half numbers which showed profit slipped by a fifth.

Lex said Esure had the biggest contributor to group profits was “additional services,” and assuming claims rise, Esure would have little option but to push up premiums.

If the rest of the market does not act in the same way, Lex warned, Esure could risk losing market share.