Novus Energy (NVS-X)

Stuck in a holding pattern because everyone is waiting to see if they finally get a bid for the company. If they don’t, the production declines are probably a little higher because they have been growing production very aggressively. Risk reward is probably $.20 up and $.20 down which is not overly compelling.

Mostly light oil. Chart shows huge resistance at about $0.80. If it drops below this, he would not want to own it. Thinks there will be a move at least back up to the $1.20 area.

Has been rumoured to have been for sale for a couple of years and now it is for sure. The problem is that there is a glut of assets for sale in Western Canada so they are joining a big queue of companies that are for sale. He always felt that the reserves were booked fairly aggressively.

Board has effectively said that the company is up for sale. Recent market transactions for their Viking assets would take fair value of $1.15-$1.30. Gain with today’s price would be $.05 to $.20 if they find a bidder. His trouble is that there are no real obvious acquirers.

Announced mid-November that they were putting the company up for sale. Did a great job of growing production but hit a wall. Takeout value would be $1.15-$1.30.

(Market Call Minute) Becoming more intriguing. Growing production 40% next year. They have to sell it or pay a dividend next year.

Oil and gas producer in Viking area. 80% oil. Likes it. Take half a position now and half when they have advanced their projects further.