Stockchase Opinions

Malvin SpoonerCompton PetroleumCMT.TODON'T BUYJan 31, 2002

A good gas play, but wait for oil/gas recovery.
$3.58

Stock price when the opinion was issued

oilgas
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DON'T BUY
One of the most levered natural gas companies in the universe. Very high risk. The value of the company is really in the debt.
SELL
Ran into production and management problems and very much on the gas side. Expect the company will have difficulty surviving. If you own consider for a tax loss.
SELL
One of the two most levered ways to play natural gas. He thinks gas will go lower and says the survival of the company is questionable.
SELL
Prefers oil to gas as gas is in for a difficult period. You have to be very selective on the type of companies for gas exposure. Look for ones that are operating in the top quartile. This one doesn't fit those criteria. Carry a lot of debt so he questions the real equity value.
DON'T BUY
Had too much debt on the balance sheet going into the lower gas prices. Trying to work out with this by selling assets. It's just a Call option.
DON'T BUY
Would be one of his least favourite names in this space. High exposure to Natural Gas. Avoid.
DON'T BUY
Not a better stock if you believe in $10 gas. Leverage has been an awful situation. Sold some assets so debt to cash flow is still unbelievably levered. Only catalyst for growth is the price of Natural Gas.
DON'T BUY
Exceedingly leveraged to gas. High operating costs. Balance sheet is exceedingly heavy and haven't seen evidence of them turning this around.
HOLD
Doing a lot of the things right. Debt is still high. A little more gas weighted. It has gone from a sell to a hold. A year or more of patients and you will be rewarded.
DON'T BUY
Gas producers in a very expensive area. Have had a very rocky past. Put themselves up for sale but unable to complete it. Have a lot of debt.
SELL
Gas producer in an expensive area. A lot of debt.
DON'T BUY
They have just done an equity issue to reduce debt. It’s not a company he would be looking at right now, even though he likes the sector as a play.
COMMENT
One of his least favourite names. Will probably be okay because they recently went to the market and raised some money. Would be cautious on this name. If there is a little bit of lift, he would be inclined to sell.
WATCH
Had far too much debt. New management issued some equity last week, which will help but doesn't think it's enough to keep the debt levels in a range that she would be comfortable with. Thinks new management will be able to turn it around.
DON'T BUY
A couple of problems. 1) In the gas business and 2) have a very high debt load. New management is focusing on cutting costs. Speculative. Consider selling for tax losses.