Josef SchachterCenturion Energy InternationalCUX.TOTOP PICKMar 31, 2005
In his 3 Top Picks, he is recommending that buyers take advantage during the weakness in the next 2/3 months. Under $12 it is a screaming BUY. They are in Egypt and are looking at Sao Tome which is offshore Nigeria as well as Libya and Nigeria.
The company has had execution problems. If they can overcome these problems there will be an upside. At $7.00 it is a buy and he recommends buying it. Target price is $15.00.
Has dropped because of 3 dry and abandoned wells. Going to try and get bigger, stronger casings that can handle the pressures. Going to restart in Q1. With their 32,000 BOE's a day should do about $1.35 annualized cash flow. Under $6, it is very cheap. Buy in Q4 of 06.
Chart is pretty ugly on this name. 3 of their Algerian wells will need specialised equipment that won't arrive until September. Avoid it until you have a better feeling of the direction where things are going.