Daily Stock Opinions and Ratings

Opinions

Glenn MacNeill, P.Eng.Opti Canada Inc.OPC.TOBUYAug 23, 2006

A heavy oil producer. Own 50% of the Long Lake project in the oil sands. Has some unique technology that allows them to use their own gas, a by-product of the refining process, to produce heat for their production.

Glenn MacNeill, P.Eng.

Owned

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$19.78

Stock price when the opinion was issued

integrated oils

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SELL

Took a flier years a go and is still licking his wounds. They need $85 oil just to make debt payments. Doesn’t see any reason to be optimistic in the future. Might short it.

SELL

Can go to zero or maybe $2. If the performance of Long Lake doesn’t improve considerably, they’ll run out of cash by the end of the year. He would be inclined to Sell.

WAIT

Have a stake in the Long Lake oil sands project. Has disappointed quarter after quarter and year after year. A lot of debt on the balance sheet. Currently in a tax loss-selling period, so there could be a rebound in January when you should consider selling.

DON'T BUY

Not in great shape. Heavy oil extraction plant has not lived up to expectations. Will have to raise money in the next 6 months, which probably means more dilution.

DON'T BUY

Has been a serial disappointer in that their SAGD technology to give much lower production costs didn’t deliver. Highly speculative

HOLD

Has been disappointing of the Long Lake project has been turning out for them. Having to put in a lot more steam than what they expected. Getting better but not back to what they wanted. Have to get over the timing for paying their debt, which they are doing, but it is diluting the shareholders. If you own, not worth selling.

COMMENT

Shares have been particularly weak over the last couple of months because they did a fairly large debt deal. Company has piled on a massive amount of debt onto their capital structure. Have 35% interest in the Long Lake project, which has struggled.

DON'T BUY

In a very tough spot. Maybe it will get turned around but it's a very speculative situation at this point.

DON'T BUY

Potential takeover candidate but any acquirer would realize the Long Lake reservoir has been disappointing. Nexen (NXY-T) is the operator and has 54 submersible pumps trying to bring up more production but it is very slow.

DON'T BUY

It’s a roll of the dice thing now. Production coming on a lot slower than people expected. Cash burn is still going on. They may pretty themselves up for a takeover. They have to do something by year-end.

DON'T BUY

When the financial crisis hit, they weren't able to get financing. Cash flows were not coming in so couldn't get access to the capital markets.

PAST TOP PICK

(A Top Pick April 27/09. Up 67.6%.) 8.25% Bonds due Dec 15/2014.

DON'T BUY

Has had for some time. 35% stake in long lake. There have been problem with long lake since the get go. They had problems with water in the reservoir. This is a name that will probably get taken out.

SELL

Owns bonds but wouldn't touch the stock with a 10 foot pole. He is not Short because it is too volatile. You probably have a window of opportunity to get out of the stock on Monday because they are giving an operational update on Tuesday. Thinks it will disappoint.

SELL

Long Lake project has really not worked out. Had trouble getting production up and the steam injection right. Costs have gone a lot higher than expected. They don't have the ability to fund much further development.

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We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Glenn MacNeill, P.Eng.Opti Canada Inc.OPC.TOBUYAug 23, 2006

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