Eric Nuttall
Terra Energy Corp.
TT-T
PAST TOP PICK
Jun 10, 2010
(Top Pick Mar 24/10, Down 18%) 80-85% proved reserves. It was trading at 5% discount to these reserves, so he thought the downside was limited. Have potential to very meaningfully increase reserves.
Just sold a large section of their Montney holdings for $67.5 million to Crew Energy (CR-T). This will get them out of their debt problems. This should move the stock up. If you are trading, buy before the winter and sell right after the winter. From an investment point of view, that stock price should move higher now.
Un-followed and unknown gas story. Tremendous opportunity at current natural gas prices. Trading at a 2% discount to its proven net present value. Low operating costs. Have over 100 net sections in the Montney, 40 of which are deemed to be prospective.
(Top Pick Mar 24/10, Down 23%) At the time it was a cheap natural gas name and now it is a VERY cheap natural gas name. It was intended as long-term holding.