Optimism for high oil prices for the long-term — Stockchase Weekly Top Picks
The CEO is a large shareholder...
TOP PICK #2
Leucrotta Exploration Inc. (TSXV:LXE)
James Hodgins, Chief Investment Officer at Curvature Hedge Strategies recommends Leucrotta Exploration Inc. (LXE-X) as his Top Pick. “This is roughly half oil and half natural gas condensates. So there are 90% liquids in general which makes this a good target for acquisition. There is almost no debt.” he noted.
The CEO is a large shareholder…
M&A globally has picked up tremendously but not in the energy space. He thinks that this will pick up, especially for small-cap companies like Leucrotta, The CEO is a large shareholder and would be well-rewarded by a good buyout. He has done it before.”
Robert Zakresky, CEO of Leucrotta Exploration did turn around and sold several companies (almost six energy companies) while being CEO of those companies. Oil prices are at the sweet spot range for the oil industry, this is most likely to trigger M&A activity soon, have this in your basket before someone picks it up.
When investing, I seek out CEOs who are big shareholder. I like companies like this one — Leucrotta Explorations — where the CEO is all-in.