Ross HealyCenturion Energy InternationalCUX.TOHOLDFeb 06, 2006
Has decent fair market value of about $25, but is up against some technical resistance and needs to break out from here. Relative to other energy stocks, it's a fair degree more expensive so it is riskier. Can still do well but wouldn't be his first choice.
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.