Stockchase Opinions

Dennis da Silva Cinch Energy Corp CNH-T PAST TOP PICK Sep 30, 2011

(A Top Pick July 13/10. Up 40.38%.) Acquired.
$2.110

Stock price when the opinion was issued

oil gas
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COMMENT
(Market Call Minute.) Concerned that debt levels are a bit high. As capX increases, it should make the production higher that will increase cash flow and reduce debt. They have Montney B.C. that everyone is excited about. Hold or Sell.
TOP PICK
Gas producer in central Alberta. Very inexpensive in terms of price to cash flow at just over 3X next year's. Trading at about 65% of the NAV.
WAIT
Resource base could be very valuable. Wells are expensive. Watching debt. Wants to see the future become a little brighter for the juniors.
HOLD
(Market Call Minute.) Great asset base but she has difficulty monetizing it.
BUY
(Market Call Minute) We are going to get some well results soon. Buy half now.
BUY
Gas weighted. She is positive on gas. Had execution problems in the past but it looks like things are getting better. Fantastic prospective land position in the Montney but are chasing things other than that and once they do this, things should be a lot better.
BUY ON WEAKNESS
Great land position with the Montney. Valuation is reasonable. Would buy on a 15%-20% dip.
BUY
Had great success finally. Enviable asset base. They continue to grow. It’s a gas stock, but they are drilling some really exciting exploration wells this winter.
TOP PICK
Has exposure to Montney gas. Very good leverage to emerging resource play in terms of the amount of land they have. Hidden gem is their Wabamem (?) play, which has been kind of a burial place for past companies but they have a sweet spot.