Peter Hodson
PetroFrontier Corp
PFC-X
HOLD
Aug 23, 2005
Have some pretty good well prospects one of which could be drilled in the next couple of months. 50% chance of a hit. If the well doesn't hit, he'll get out.
(A Top Pick Sept 1/06. Down 28.3%.) Has been terrible. They have an ongoing business and he is continuing to Hold. Trading at slightly more then 4 X cash flow under basic production.
Risk/reward is very attractive. Venezuelan government expropriated 60% of the assets and now there is a flight of capital out of Venezuela. There is relative downside risk. Have lots of cash. Looking to increase his holdings.