Bruce Campbell (1)Western Oil Sands Inc.WTO.TOBUY ON WEAKNESSApr 20, 2005
Prefers CNQ (CNQ-T) which had a 10% difference between the high and the low for the day which is ridiculous. Western Oil Sands being smaller will have even more volatility. Best to pick a price that you want and wait for that price. Don't chase it.
Being acquired by Marathon (MRO-N). He is buying it for the sum of the parts of the valuation. Basically what you are getting with the Marathon take out is cash and about 33% of stock. You also get a junior international exploreco, Western Zagros in Kurdistan, where there are significant light oil deposits. Market is not fully valuing this company.
Marathon Oil (MRO-N) has made an offer to acquire. Part of the deal was for them to spin off their Kurdistan assets. Stock has been trading at a premium to the offer that could mean the market thinks a higher bid is coming or if the market is ascribing more value to the Kurdistan asset than originally thought. He feels it is the latter. Be surprised to see a competing offer come in.
This is 20% of Shell’s oil sands project. Has terrific leverage to doubling its production over time. Little worried that the stock is moving up on rumour.