Bill Harris, CFA
PetroFrontier Corp
PFC-X
BUY
Nov 24, 2005
The hard asset value is near $4 and the reason you can buy at about $2 is because of Venezuela. There was a lot of uncertainty because of the government. A lot of that is going to be cleared up in the next several months. It now looks like it's business as usual there.
(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.