Stockchase Opinions

Don Short Novus Energy NVS-X COMMENT Sep 22, 2010

Large land position in southern Alberta/Saskatchewan. Management has been aggressive in assembling positions. Had a pullback in the 2nd quarter, which was probably due to wet weather. Sold his holdings but starting to look at it again.
$0.790

Stock price when the opinion was issued

oil gas
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BUY
(Market Call Minute) Balance sheet good. Cheap multiple. Small, Small cap oil producer.
HOLD
(Market Call Minute.) Will probably get caught up in consolidation but you will have to be patient for a while.
COMMENT
(Market Call Minute.) Really, really, really cheap. Wouldn’t be surprised to see it taken out.
BUY

Oil and gas producer in Viking area. 80% oil. Likes it. Take half a position now and half when they have advanced their projects further.

DON'T BUY

(Market Call Minute) Becoming more intriguing. Growing production 40% next year. They have to sell it or pay a dividend next year.

HOLD

Announced mid-November that they were putting the company up for sale. Did a great job of growing production but hit a wall. Takeout value would be $1.15-$1.30.

DON'T BUY

Board has effectively said that the company is up for sale. Recent market transactions for their Viking assets would take fair value of $1.15-$1.30. Gain with today’s price would be $.05 to $.20 if they find a bidder. His trouble is that there are no real obvious acquirers.

DON'T BUY

Has been rumoured to have been for sale for a couple of years and now it is for sure. The problem is that there is a glut of assets for sale in Western Canada so they are joining a big queue of companies that are for sale. He always felt that the reserves were booked fairly aggressively.

COMMENT

Mostly light oil. Chart shows huge resistance at about $0.80. If it drops below this, he would not want to own it. Thinks there will be a move at least back up to the $1.20 area.

HOLD

Stuck in a holding pattern because everyone is waiting to see if they finally get a bid for the company. If they don’t, the production declines are probably a little higher because they have been growing production very aggressively. Risk reward is probably $.20 up and $.20 down which is not overly compelling.