Bill Harris, CFAIvanhoe EnergyIE.TOWEAK BUYMar 24, 2006
They have 3 big assets and any one of them have the ability to be a multibillion-dollar asset. They are all long-term so could take a while, but if any one of them work out it will be extraordinarily valuable. The stock is expensive and speculative.
Not a lot of upside on this story. A bit of a grab bag on technologies and areas it is producing from such as California and Mongolia. It's all over the map. If you own, ride it up a bit and then start selling it.
Elephant hunters! You have to almost put fundamental analysis on the shelf. Look at only how much the wells will cost to build and what is the upside. Recently announced a couple of nice gas discoveries. Would rather have it when he has full knowledge of what they’ve got and pay more for it.
Has technology for upgrading high sulphur oil. Interesting technology for future years when oil starts to take off. Still early. Have some heavy oil assets around the world but he would wait and see.
Have the Ivanhoe upgrading technology in the oil sands. Also have an impressive land base in the oil sands. She likes to play upgrading technologies as a portfolio in order to spread the risk. These would include Opti (OPC-T) and Petrobank (PBG-T) and Ivanhoe (IE-T).
Recently announced buying Talisman’s (TLM-T) heavy oil assets. Have technology for treating heavy oil. If it works and can use it in more than the Talisman’s project it could be a big home run. Would like to see this proven before he buys. (Maybe at $5 with a run to $10.)
Has technology to upgrade heavy oil which will increase the oil's value by $20 to $30. Once they have one proven success then they can cookie cutter it to other companies. They are keeping an eye on the story.
They are looking at some new processes for drilling. Has a decent profile of individuals on its board and decent operators. Company hasn't done much. Numbers have not been terribly robust.
Likes the higher low. Looks like an elevated base. It is a fairly bullish formation. Above the long-term moving average. Could retest the high of $3.00. Don't let it take out $1.94.
Have developed a number of new processes for drilling. Have experienced people on staff. Internationally focused. Would prefer more of an exploration company in Canada.
Working on a technology for upgrading heavy oil. If they can get some large players to use this and the technology proves to be at success, they want a piece of the action.
Copper/gold project in the Gobi desert. Rio Tinto (RTP-N) has agreed to finance it giving and 33% of the company. This adds technical credibility, but he would like to see the agreement signed before buying.