Eric NuttallCorridor Resources IncCDH.TOHOLDDec 14, 2010
Sold it when well results came out but firm still owns it. Won’t have results for another 6 months. Management doesn’t know what’s going on. They said results were ‘perplexing’. As a firm they are still big supporters of the name.
He considered taking a run at it at $0.40. It has money in the bank, no debt, he likes what the management is doing. The absence of debt limits the downside risk, making this a reasonable spec, but he doesn’t see much momentum at this time, partially because of regulatory issues.
(A Top Pick Dec 8/11. Down 57.57%.) Still likes. Very cheap. Has been hurt because of the atrocious gas prices. Have 3 significant plays, one gas and 2 potential oils. Expect they will have a partner for some of these.
In the small cap space it is so easy to be wrong. This is a company that has been experiencing negative change. Nat Gas has been a tough place to be for a long time. Stay away until the sector gets better.
(Top Pick Oct 27/11, Down 23.17%) Drifted off on indiscriminant selling. Zero bad news. In fact terrific news last week. New Brunswick. Believes it is crazily valued below $2. More than $10 of asset value. No debt and cash on the balance sheet and cash flow from small production base. $3 of proven reserves. Get price higher into New England.
Has had a tough go. Drilled two wells and results were inconclusive. They are left 100% in the play, which is very capital intensive. It could go either way. They want to drill two horizontal wells into the play while looking for a new joint venture partner.
Hugely significant catalyst coming in the next 3 months, which is drill results from Apache (APA-N) but a possible 60% downturn if this play doesn’t turn out.
Attractive. Frederick shale seems to be producing. Question is the macro growth story. What happens with the global growth story? If global growth is on the back burner, this story is not going anywhere. If global growth is back in the forefront, this one should go quite a bit higher.