David Cockfield KIWETINOHK ENERGY CORP. KEC-T HOLD Aug 28, 2003

The smaller energy companies have had a wonderful run due to income trusts acquiring them in order to build up the reserves. The trouble is, you have to know which ones is going to be acquired. Prefers the larger caps.

Has some properties in the very exciting West Pembina/Niscu play. Could certainly be a takeover candidate.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Trading is thin, despite its $480M market cap. Sales had a big drop, to $114M from $159.5M, as prices declined. EPS fell more than half to $1.09 vs $2.57. Production of 24,707 fell slightly. With lower prices, the only way to improve cash flow is with production, and investors prefer to see growth here. The stock is VERY cheap, but then again many in the sector are. We need a catalyst here to create more interest. The balance sheet is decent. ARC Energy owns 63% and insiders own 2.4%, so the float is tight. This keeps many large investors at bay. We would deem it OK, but certainly not a 'need-t-own'. 
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