Alice TsangOpen Range Energy Corp.ONR.TOTOP PICKSep 29, 2011
(A Top Pick June 24/11. Up 65.4%.) Spinning off their specialty tank business. One of the best wrote stories she has seen. Now a $60 million EBITDA. Guiding $130 million for the tank business in 2012, which is more than double the current year's growth. Growth phase is still very early. More competition coming but they have the first mover advantage. Expects a current yield of 12%.
(A Top Pick June 8/11. Up 170%.) Spun out Poseidon Concepts (PSN-T) and this company’s shareholders got 88% of the Poseidon in addition to the remaining gas assets in Open Range. On a gas recovery he would get more bullish on this name.
Dry nat. gas producer. They made the decision that they would cut back on drilling in Nat. gas. Will drill liquids rich wells. Trading cheaply on reserves and on cash flow basis. Doesn’t have appeal. Dead money for the next 4 to 5 months.
Spun out their tank business, which is why the stock price has dropped. Company is about 90% gas. They can make money with the present gas prices and they produce about 4600 barrels a day and will be exiting at 6000 barrels a day. A lot of great growth and is reasonably priced.