Bankers Petroleum (BNK.TO)

Never been a core holding but has traded it and after a recent meeting is comfortable telling his people to keep an eye on it. Struggling with some operational issues in Albania which is behind them. If you can buy it down here around NAV level he would be okay buying it.

Has been fairly range bound for quite some time. There is a tremendous amount of inherent value. Has a great balance sheet. They benefit from strong global oil prices. Their production mix is heavy but there is a lot of resources to be addressed in Albania as high as 6 billion barrels of oil in place. They are on track now, 4 or 5 quarters, to putting in 6% per quarter production growth. Cheap and trading at 2.2X price to cash flow on next year’s numbers.

(Market Call Minute.) Heavy oil in Albania. He would probably pass on this for now.

Albania play. Fundamentally he has no insight. Technically there is a range and a base pattern building. If it breaks about $3.40 he would be a dip buyer.

(A Top Short April 5/12. Up 18.22%.) Had recommended this thinking it was going to be a two-for-one sale and it was. If oil comes off by $20, they will be impacted negatively on their net backs, so again the stock is vulnerable. A Buy again at $1.50.

Had production issues with their field and have resolved some of them such as water intrusion issues. It is really cheap and is trading below its proved reserve value. But he sees no catalyst to take it to the next level. They will be in the dog house for some time to come. They are probably low down on the shopping list of those that might take them out.

Missed their numbers in terms of growth on their heavy oil play in Albania.

Fell 60%-70% from $5.70 to a low of $1.40. Very strong decrease on the falloff on Brent oil prices. Had several quarters of missed production and some sub surface issues with water intrusion in some of their wells. Recent pop was on a data point which suggested that FMV could be 100% higher than where it is currently. He still has challenges with a company that misses production guidance quarter after quarter.

This has been on his watch list for about a year and a half but he hasn’t looked carefully at the fundamentals. This one has never tweaked his interest enough to look really closely at it. From a contrarian perspective, it doesn’t do it.

(Top Short Apr 5/12, Up 47.80%) When they missed their numbers it went down.