Tuesday tips round-up: Premier Oil, TUI

Sooner or later the larger oil companies will look to take advantage of the recent drop in the price of crude to buy-out some of the smaller independents. One of those potential take-over targets is Premier Oil. The company is also attractive as it has nearly completed the re-organisation of its portfolio, which will raise $300m. Then there is the expected start to production at its 60%-owned Solan field west of the Shetlands. More significantly, the outfit has found a less expensive way of developing its Sea Lion field off the Falklands without a partner. That had been holding the stock price back. Despite all of the above, the shares are trading at a steep discount to their estimated net asset value. “Buy for the long-term,” says The Times´s Tempus.