Josef SchachterFind Energy Ltd.FE.TOBUYJun 20, 2005
Junior stocks have not had as big a run as the seniors. This one has had a nice run from the $2's into the $4's. Have cleaned up the balance sheet with some asset sales. Thinks they will exit 2005 with over 4,200 BOE's a day.
(A Top Pick July 27/05. Up 81%.) Being acquired by Shiningbank (SHN.UN-T). He would take the offer and sell. Consider Duvernay (DDV-T) as an alternative.
Being acquired by Shiningbank Energy (SHN.UN–T). If you own, tender to the offer and move on to something else. This was more of an exploration company and Shiningbank is more for an income-oriented account.
Should be a core holding in your junior group. Has one of the most capital efficient frameworks. Has lots of prospects. On a multiple/cash flow basis, it is trading well below the group. Expects there will be much higher gas prices.
Westerly Canadian natural gas selling at a discount to net asset value. Has a clearly defined strategy to go forward. Great management and well-financed.
A big fan of this one. Expanding their facility at Pembina West to 50 million. Did 3246 BOE’s a day last year, exited at 5100 and he is using 6000 in his model and exiting at 8000 this year which gives cash flow of $1.85. Could be a takeover target.
Predicts Find Energy will go to $12.00. The company is 60% gas weighted. Just added a new facility. The company has very rich liquid gas. Good cash flow, exploration upside. Some time this year there might be a share holder maximization process. He has recommended this stock a few times before., he still feels it will do well.
Trading at about 3.9 X enterprise value to EBITDA compared to the peer group which is 4.8. Trades at about 25% discount to the peer group. Very good management team.