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Oilexco Inc (OIL.V)

SELL
(Market Call Minute.) Huge financial problems.
DON'T BUY
Just cancelled the 15% convertible bond and common share offering and are looking at alternatives, such as selling the company. Shows the high cost of capital in finding North Sea oil. Would advise caution.
DON'T BUY
Would be a little wary of companies that need to raise capital. Had a failed issue and they are bringing on a lot of projects and they do need capital.
PAST TOP PICK
(A Top Pick Sept 11/07. Down 75%.) Announced results for the 3rd quarter and did on average about 12,000. Had maintenance on one of their platforms. 14,000 BOE's a day in July, 0 BOE’s in August and in September came on with about 20,000. Have to come up with $100 million.
DON'T BUY
As a junior, it was doing very well until refinancing issues came up. It will be a struggle for them in the near term.
WATCH
He owns this and will be averaging down. This is a great entry point presuming you like the market. He is not buying the market today.
HOLD
Fantastic assets. Expected to grow production at a high rate over the next several years and need money for financing. Had a large line of credit with the Royal Bank of Scotland, which is having some difficulty. Market will have to move beyond this credit crunch. Too late to sell and too early to buy.
COMMENT
Great little company. Has been hit dramatically hard because of what is perceived to be a financing crisis, which is not really the case.
TOP PICK
One of the cheapest stocks on the index today. North Sea play, Huntington had 2 wells come in recently. Proven and possible reserve will be increased by the end of the year. Cash flow in 2008 of about $800 million and 2009 $1.4 billion. Market cap $700 million and are more than able to cover capital expenditures with their cash flows.
HOLD
Dependent on bank lines to complete their expansion plans but have very solid internal cash flows. All they have to do is drag out their drilling programs and will be able to generate the cash. Excellent assets in the North Sea. He is trying to get enough nerve to average down on his positions.
BUY
A giant junior in the North Sea. Doing brilliantly. One day, the banks will start doing business again.
BUY
Biggest risk on this one is refinancing. Thinks the market has blown this out of proportion as this company has significant reserve value with growing production and cash flows coming at them every day. Stock price is reasonable. Will be more volatile but if you have a few that is more than a quarter or two it will probably work out just fine.
DON'T BUY
Pretty tough to get financing done in any sector. His best bet is that financing will get done eventually. Not as strong on resources.
HOLD
Still have some potentially funding issues. Remains to be seen if they will get a private equity infusion of some kind. While they are very profitable and have shown reserve bookings and are one of the more solid operators, it is too much of it question mark.
HOLD
Lots of production. Stock dropped because oil prices are down 50% and people sold a lot of smaller mid-cap stocks. Also, access to funds from a European bank disappeared and people panicked. Trades at 1X next year's cash flow. They don't need cash.
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