Dennis da SilvaBankers PetroleumBNK.TOHOLDJun 27, 2014

(A Top Pick Sept 2/15. Up 6.34%.) A small Albanian heavy oil company. This is being taken over by a Chinese company. This has a really great year-to-date number.

Just won a tax dispute against the Albanian government. Up until a few months ago, the $57 million would be a major win, but right now it is going to be going into the pockets of the Chinese company that is bidding on the company. If you own this, you are just holding for another nickel or dime.

Being acquired by a Chinese group. At the beginning they announced a bid of $2.20, and the stock was trading at about $1.80. He thinks the investment community did not know this Chinese group and not able to assess their legitimacy. They have gotten through various regulatory hurdles. He has elected to sell ahead of the acquisition.

(Market Call Minute.) This is actually worth $2.20 because that is the bid price, and she thinks the deal is going to go through.

You want to look at news and see how the price reacts. We had positive news, but the price is struggling. It has not outperformed crude oil. You want to own those companies that can outperform crude oil.

The bidder is from overseas and sometimes they don’t bring the money to the table. The risk is that you are assessing if an overseas deal happens here. He feels most investors are not in a position to judge this. Go for something that is easier to understand.

(Market Call Minute.) An arbitrage play. There is risk. He bought into this last week at $1.82.

The perception is that Long Run has been bought by a Chinese company and now another Chinese company is buying BNK-T. There has been insider buying from officers. He is tempted to dip his toe. If you hold it, then hold on.

(Market Call Minute.) Recently got a bid from a Chinese Consortium at $2.25. Stock is trading well below that on the fear that the Chinese buyer might not have the cash or may not close the deal. There is also Albanian tax risk. He reads it that this deal probably does go through, and there is a nice spread there for someone willing to take that risk.

Being acquired at $2.20 a share, but the stock price is at around $1.85. The difference is because there is very little visibility into the buyer, and their ability to come up with the cash is still in doubt. Too many moving parts.

It is an all cash deal. You have the upside of a Chinese company coming in. They operate in an area where they already had issues with government. He would sell and look for the next idea.

(A Top Pick Feb 12/15. Down 77.71%.) This has been a disappointment. Had problems with the Albanian government, but the tax issue should get sorted out sometime this quarter. Great quality company, and its assets are phenomenal. In a rising oil price environment, this is a great place to be.

We need volumes to drive prices higher but not volume to drive prices lower. He is less concerned if prices are dripping on low volume.

Has a lot of refining contracts with refiners in the Mediterranean, so are able to ship barrels directly to those refiners. Has been a lot of disappointment with regards to a tax issue with the Albanians. Thinks this will ultimately get resolved. Excellent assets and excellent management team.

Doesn’t see this as a takeover target. Their balance sheet is fine and has no net debt. Valuation is reasonable, but the problem is they are in a fight with the Albanian government over a tax dispute, so their bank accounts were recently frozen. Albania is where all their assets are. Very bad price momentum. Has this as a small Short. This is not something he would hold.