Robert Toole
Synenco Energy Inc.
SYN-T
WEAK BUY
Jan 18, 2007
Expected to start production in 2009. Very leveraged to crude prices. The more leverage, the better performance on higher crude prices and vice versa. Prefers the more conventional producers that can grow their production and cash flow in the near-term.
A prospective oil sands developer. Looking at production coming in 2011-2012 hopefully. At this point, you are paying up for that production now. A lot can happen. Lots of costs overruns in the oil sands.
Doesn't know if it will sell. Very speculative. The downturn reflects a negative situation regarding a sale. Prefers something like Oilsands Quest (BQI-A), which is in glorious Saskatchewan, a non-Alberta tax situation.
Active in the oil sands. Their partner is the Chinese Sinopec in developing this. The problem is, the project was marginal to begin with. Had lots of cost overruns and there is no production yet and there won't be for a number of years. The project is up for sale, but nobody is buying it.
Like many oil sands non-producers, it is basically just leases. There is a very fine funnel that all these projects must go through, both in terms of project development skills and financing. Doing a reasonably good job. Has had a management change. Have a very long shot of going into production.
Software company. Has been acceleration in the database business. Also have a mobile pack that is used for messaging. Includes a software platform available for iPhones to allow the iPhone to be attached to an enterprise for safe e-mail transmission and accessing corporate information. Great growth rate and great margins.
The whole Pharma sector, which was such a hot sector in the 90s, has been suffering for the last 15 years, and this one is no different. Having trouble coming up with new drugs. A very well-run company. He can see a lot of earnings growth in the next couple of years. Not cheap.
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