Pacific Exploration & Production. (PRE.TO)

BUY
Has taken a bit of a hit but it moved 7% today. It is a higher beta stock compared to the rest of the energy sector. Likes the earnings momentum. Last weeks results were in line.
SELL
Amazing chart. Real big loss of momentum. Not something he would be buying right now. Sell it. There is a loss of support. At the $28 level you will see another $3-4 drop on it. Buy if it breaks above $35
BUY
Colombian oil play. Good entry point. Has good long term potential.
BUY
One of the first companies that were successful in South America by developing a heavy oil field and have since got a lot bigger. Have size, flexibility in terms of cash flow and should be a core name for a South American or Colombia name.
TOP PICK
One of the biggest oil producers in Colombia. Feels they can grow production 35%-40% this year without any exploration. Also drilling some exploration, which should add to their value.
COMMENT
Strong misunderstanding on their exploration update on 2 areas, where there was some ambiguity. Market over reacted. He just bought at $30. Core NAV is about $26 and risk value is about $40 a share. His downside is about 15% but his upside is about 33%. Will probably Sell around $33 but you can hold into the high $30’s.
PAST TOP PICK
(A Top Pick March 8/10. Up 77.55%.) Still likes at current levels. Developing a huge oil field in Colombia. Stable government.
TOP PICK
There appears to be a group mentality developing, which interests him in Colombia because there is obviously room for oil giants in this Market. Thinks this market is moving to a new level. Have good assets in the ground.
BUY
There has been a consolidation on the S.A. oils over the last several months. These oil companies are great allocators of capital. This one has a real opportunity to add it its reserves.
BUY ON WEAKNESS
You are paying for future success and he prefers to get exploration for free. Feels he has missed the easy money in the name.
BUY
South America exposure. A lot bigger than Gran Tierra (GTE-T) so slower growth but less risk. Mostly oil but some gas.
HOLD
Announced a special dividend to be paid to shareholders. If you own, consider taking some of the table but basically it’s a Hold.
COMMENT
Beautiful chart. Still above the 200-day moving average. Because it is so far away from the 200-day average of $25, it is possible that it will pull back to that.
BUY
Ranks very high in his models in the top 7%-8%. Great earnings momentum. In the right space, natural gas and oil in Colombia.
HOLD
One of the great success stories in Columbia. Great long term Buy. Chilean and Colombian exchanges are getting together to form a new exchange and this will be listed. The wealth being generated in Latin America sill start to flow into some of the better growth stories.
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