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Oilexco Inc (OIL.V)

SELL
Takeover is probably one of the only things that will pull this company out but people might wait for it to go into receivership and then go for the assets.
DON'T BUY
Thinks they sold about a quarter of the company to get the extension on debt as they go through the sale process. Market was not happy with that. Not a fan of the North Sea.
HOLD
It is unlikely that financing will be forthcoming anytime soon. Expect it will be sold for about $3 or $4.
COMMENT
Weak on its profit characteristics. ROE level is very high but it is flat. Street expects some pretty poor numbers going forward.
COMMENT
Recently unsuccessfully tried to do a convertible offering. This could put capital expenditures for 2009 into some jeopardy.
HOLD
(Market Call Minute.) Thinks the company will survive but it's going to be a stretch on production.
COMMENT
Screens very poorly so he would want to Short this against other energy names. You could pair this up with a big cap integrated like Suncor (SU-T) Husky (HSE-T) or Imperial Oil (IMO-T). He likes this trade a lot.
COMMENT
Fair amount of debt. Had Royal Bank of Scotland in their lending group. Hired advisers and expects it will eventually get sold. Debt is about where the asset value lies so doesn't expect a lot of upside.
HOLD
(Market Call Minute.) Latest issue has created a lot of dilution.
COMMENT
Had a lot of trading around the $4 to $6 area. They are hoping for a take-out but expect it would have to be $1 or $2 more before shareholders would be interested in selling.
PAST TOP PICK
(A Top Pick Oct 25/07. Down 84%.) Funding concerns are a very big issue. Fundamentals remain phenomenal but they are in an old fashion liquidity squeeze. Royal Bank of Scotland refused an extension of credit and hedge funds shorted it. Need about $40 million by Jan 31.
COMMENT
Unfortunately was tied up with a bank that was in trouble. An easing of credit and improvement in oil prices would help. Very strong junior North Sea player. You could speculate on where the oil prices will be in 12 months, which he feels should go up.
COMMENT
Had a convertible debenture issued but it was cancelled. Very onerous with a 15% coupon with $2.50 being the convertible price. When you have to pull an issue when it is too expensive, he would be very nervous if he were a shareholder.
WAIT
(Market Call Minute.) Very strong seasonality from January to May. Watch for some stability in the stock before buying. Wait until January.
DON'T BUY
The problem with this company is that if oil trades below $40, it doesn't work for them. Likes the company and management. He prefers low cost producers and this does not fit in his category.
Showing 31 to 45 of 253 entries