SDX Energy Inc. (SDX.L)

Trading has been halted for a week or two because of rumours of a reverse takeover. Trading has been halted by the London Stock Exchange until SDX either does the deal or does not. He has no information about the takeover. He still likes the company because it is significantly increasing production from discoveries already made, in line with expectations it has set at conferences. All the things they’ve talked about, from an operational point of view, are happening. He thinks the stock is cheap and he assigns a $2 target to it. But valuation might change with the details of the deal.

The company is sitting on $25 million in cash and has no debt. The company will hit 8000 boed before year end with upside in Egypt and Morocco, he thinks, and up to 20,000 boed within five years. He has a $2.00 per share target in the next 12 months and owns it personally. Yield 0%. (Analysts’ price target is $1.32)

(A Top Pick November 9/17 Up 8%) Production volume growth in Morocco and Egypt has been very positive, rising from 3300 boed in Q1 to over 4400 boed. New discoveries are being tied in by pipeline, allowing production to rise to 8000 boed by year end. He has a $2.00 per share target and owns it personally.

They are adding production over the next 2 quarters from discoveries already made. While the stock has tripled, production has gone up 5-6 times. He has a 1 year target of $2.00 and a 3-5 year target of $5.00. (Analysts’ price target is $ 1.36)

(A Top Pick Nov. 9/17, Up 14%) It is also a Top Pick today.

They just announced today that their forth well came in successfully. They are going to be bringing this production on. They have no debt. He has a $2 one year target. (Analysts’ target: $1.37).