Daily Stock Opinions and Ratings

Opinions

Alexander Lane, B Comm, C Opti Canada Inc. OPC-T BUY Sep 21, 2009

Oil sands with a 40-year project life. Built and in its ramp phase. There are complications as you get to the ramp phase. Just did an overhaul of their water and injection facility and over the next few weeks he expects they will be back on track. Had some balance sheet issues that they resolved with an equity issue. Very volatile.

Alexander Lane, B Comm, C

Owned

Unlock Rating

$2.200

Stock price when the opinion was issued

integrated oils

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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

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

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

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.

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.

DON'T BUY

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

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.

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.

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.

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.

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Alexander Lane, B Comm, C Opti Canada Inc. OPC-T BUY Sep 21, 2009

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