Niko Resources (NKO.TO)

(A Top Pick Sept 25/12. Down 29.21%.) Got massacred because of the India problems and financial issues. Resolved the financial issues with financing that have just been completed. Now drilling a high impact well in Indonesia. This is the 1^st well in their program. 12 month target is $20 but any drillbit success or any movement in India to resolve the pricing could raise his target significantly.

This is elephant hunting. They have absolutely dry, dry wells in Indonesia. Have just raised money, which they were running short of. If they suddenly have a big hit, you will obviously make an astounding amount of money. It is a crap shoot.

He sees a few gaps during this year. The downward cycle does not look like it is going to change.

(Market Call Minute) 6 dry wells in a row and a convert coming due end of this year.

This is one of the very few Canadian oil/gas companies that has indulged in a kind of elephant hunting. Down at this level, for the speculator, this has to be an attractive price. Huge resources in the Bangladesh territories.

He would not be excited about taking this risk. Recently had a write-down of their reserves and that was a fairly substantial move that weakened the stock. Still looking for clarity on the Indian pricing on the gas contracts.

Has been absolutely killed. Their resource space was not all that it appeared to be. Involved in a number of lawsuits. Company is losing bags of money. However, stock prices come down so far that he emailed the company for further information. It is of interest to him at this point in time but once he discovers a company, he waits at least 6 months before he can potentially buy and this would take them out to about March and he usually doesn’t buy at that time of year.

Has been hit very hard, partially because of the issues with India as well as having a convertible debt that matures at the end of 2012. Trading very cheaply based on the Indian assets. There is much upside in the Indian assets with BP (BP-N) and Reliance as their partners. BP has been very positive on the global potential of the upside. Need to get a deal with the government on higher pricing. Also, have a large amount of land that they will be drilling next month in Indonesia. (Buy a half weighted position now and take advantage of any market malaise in Nov/Dec to go to full position status on any weakness.)

(Market Call Minute.) This company has been so bummed out that it is tough for him to say Sell but they have a $40 million deficit in CapX for 2013 and has got 4 dusters in a row and they have a $310 million convertible due in about 3 months.

(Market Call Minute) Former market darling. Fallen on hard times, Original asset is shrinking, does not like the risk profile. An exploration story now.

Suspects we will re-test the recent lows and they will loose money in this and next year. Take the capital loss.