Michael Giordano Renegade Petroleum Ltd. RPL-X HOLD Nov 18, 2013

There is a strategic review going on with this company. They are looking for a buyer or are selling off some assets to help their balance sheet. Have been for sale for a long time.

Hasn’t owned for a long time because of debt levels. Recently made some management changes and it seems as though things are turning around but you are not seeing evidence of it in the stock price yet. Not looking to get into this immediately but is watching it. Could be a great turnaround story.

Have had good results but they don’t know what the strategy is going forward and that is the one issue that is holding this company back.

Doesn’t want to get involved in the soap opera too much right now, but they’ve been under strategic review since April/13 and in that timeframe they have sold assets, deleveraged the balance sheet and just announced a $109 million disposition, effectively selling 17% effectively of the production for the equivalent of 23% of the value of the company. To be able to do do’s of that size is a coup for the board. Metrics were pretty good. There will be a special vote later this month for nomination of a new slate of directors.

Assets weren’t really ready for a transition to a dividend growth model and now they are in more of a growth mode. They are in a de-risking mode. Looks cheap and that is a temptation, but he looks for better opportunities.

Being acquired by Spartan (SPE-X) (formerly Alexander Energy) to create Premier Light Oil. Really loves this deal and is really excited about it. This is absolute the best outcome for the shareholders. (See Top Picks.)

Recently sold his holdings. They just recently entered into an agreement with Alexander Energy where they are going to merge the 2 companies. Renegade changed from a traditional growth Junior to an oil/gas dividend payer. Made a big acquisition over a year ago and this stretched their balance sheet. This is no longer a yield play but is an interesting growth play.

When you get your Spartan (SPE-X) shares in a few weeks, your overall portfolio holding in that entity will continue to move higher. Feels that Spartan, which is trading at around $2.60-$2.70 currently, is probably worth $3-$3.25. He respects the management team. Has been buying Renegade in order to get shares in Spartan for the last couple of weeks.

Spartan Energy (SPE-X) is acquiring this. The 3^rd iteration for Spartan. There are a lot of institutions that have been backing Spartan management and will continue to do so because they have such a successful track record. If you own, continue to hold and become a Spartan shareholder.