Eric Nuttall
Spartan Oil Corp
STO-T
TOP PICK
Nov 12, 2012
Owned for a while. The demand for yield is highly significant in terms of how people operate. Chart says management has been under promising and over delivering for some time. Can grow by 60% next year. Thinks they can pay a dividend next year. Expects 6-7%. If not, their asset will be extremely attractive to be taken out.
Currently producing about 2000 barrels a day. Have a large interest in a Keystone/Cardium unit in Alberta. Has largely become a manufacturing process for them to go and drill it up. Massive inventory. Low geological risk.
Great, great oil company. Good example of a mid-cap stock that has been lambasted but has held up better than most. Put out a great quarter a few days ago showing the strength of their main property, the Keystone assets. Extraordinary management team. Picked up an asset very much on the cheap. Trading at a significant discount to its reserve value. Growing production by 180% this year. Very cheap.
The merger will create an oil weighted junior and a dividend paying company so that is positive. An excellent company and the street will learn to love them. Likes this name. Very reasonable upside. Has been rumored as a take-over candidate.
Owned for a while. The demand for yield is highly significant in terms of how people operate. Chart says management has been under promising and over delivering for some time. Can grow by 60% next year. Thinks they can pay a dividend next year. Expects 6-7%. If not, their asset will be extremely attractive to be taken out.