Stockchase Opinions

Eric NuttallNovus EnergyNVS.VPAST TOP PICKApr 13, 2011

(A Top Pick Dec 14/10. Up 27.78%.) Generally very much under appreciated. He gets an NAV of $4.75 per share but thinks they will get whacked before that point. Still a Buy. Looking for $1.45 to $1.76 for a take out value.
$1.15

Stock price when the opinion was issued

oilgas
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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.

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.

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.

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.

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

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

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.

COMMENT
(Market Call Minute.) Really, really, really cheap. Wouldn’t be surprised to see it taken out.
HOLD
(Market Call Minute.) Will probably get caught up in consolidation but you will have to be patient for a while.
BUY
(Market Call Minute) Balance sheet good. Cheap multiple. Small, Small cap oil producer.
PAST TOP PICK
(A Top Pick Dec 14/10. Down 10%.) Thinks FV (Fair Value) is over $1. Still likes.
DON'T BUY
Southeast Saskatchewan Viking player. Expect they will be a potential acquisition target down the road. Concerned that their reserves are a little aggressively booked.
HOLD
The stock has gone down but production level has gone up. Had good success in the Flaxcomb area. They are advertising rates of over 150% on $90 oil. Debt to cash flow is 1.4X using $90 oil. Coming into tax loss selling so it is down along with a lot of others.
BUY
Production is steadily growing. Were successful in mounting a pretty active drilling program in Saskatchewan despite the extremely wet weather. Sitting on an inventory of 440 net risk locations in the Viking. Where the economics are fantastic. Be patient and let them grow production.