Tuesday, April 17, 2007

PETROHAWK (HK) added to WATCHLIST ....M&A target confirmed.

PETROHAWK (HK) $14.37 -0.34 (-2.31%)

We have liked this one for over a month. We almost added on the last dip, but got gun shy....this time we are close , we want a bit more of a dip, then BUY.

Please let it go down a bit more before buying...go team!!!!

This one is getting bought, thats what this CEO does.

Friedman Billings reiterates Outperform. Target $21 to $24. Friedman Billings adds HK to their Top Picks list and raises their tgt to $24 from $21 noting HK shares have rallied since the start of the year, as management has consistently highlighted its desire to focus on the co's operations. With management also contemplating the possibility of monetizing just its Permian assets, the firm believes the co is in a great position. The firm says on one hand, M&A comps suggest the company could be sold for near a $20 takeout, without commanding a huge premium. Further, if only the Permian assets are sold or spun out in an M.L.P structure, they believe mgmt would fetch at least $3 per share in value.

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