Stockchase Opinions

David CockfieldPetrobank Energy and ResourcesPBG.TODON'T BUYOct 21, 2011

Reasonable yield, but not sure if it is sustainable. Some of their operations in South America are not particularly predictable and have high decline rates.
$8.21

Stock price when the opinion was issued

oilgas
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COMMENT
options action It's hitting 52-week highs. Today sees a buyer of 13,000 of the May 16 call, trading at $15.60, at 29-33 cents. Inexpensive and unusual because they're going out to May while other stocks are shorter term.
COMMENT

Has been rising rapidly from $1+ in the last few days. Management is attempting to create an interesting producer. Drag on it might be their THAI process, which really hasn’t gone commercial but other assets are quite interesting. Good management.

DON'T BUY

(Market Call Minute.) Not interested. Looking at others.

BUY
Period of seasonal strength is from the middle of February until the middle of June. It has had a nice little breakout and has kept on going higher. Technically looks very good. Above the 50 and 200 day moving averages.
COMMENT
Owns PetroBakken (PBN-T) along with other holdings. Would prefer this to Petrobakken at this stage.
DON'T BUY
Not a big fan of this group of companies. They are typically quite aggressive at issuing equity issues to the markets.
DON'T BUY
Has not made a new low and is starting to base. Would look at pieces and not at the company as a whole.
DON'T BUY
Used to be an interesting basket of companies. Very high decline rates. Their capital structure is putting pressure on the share price. Some question if the THAI process will work.
SELL
Doesn’t seem to be happening. Done some changes recently. Maybe the Bakken is not working well enough for them. Get Petro Bakken and get the dividend.
WEAK BUY
The remaining shares are probably a buy. It might take a little bit of time to work it out. You should do well in the next 6-12 months.
COMMENT
Voting tomorrow on spinning out their portion of Petrminerales (PMG-T). Need to split to give these entities their own autonomy so they can grow independently and the market can focus on them.
SELL
Parent company of several sister companies. They have access to fire flood technology. Initial results are less than stellar. Industry has seen no signs that it works.
TOP PICK
Their interest in PetroBakken (PBN-T) and Petrominerales (PMG-T), which is primarily Colombian oil is probably worth $40 plus a share, which is close to the present share price. Rest of the company is 3 projects including THAI projects which are starting to work well.
BUY
Parent of PetroBakken (PBN-T). Of the two he would prefer this. Independent Reserve estimators may give them reserve bookings for their THAI project, which will be a first.