DON'T BUY
This is not the high-risk way to play Kurdistan. She has not seen anyone get paid. Doesn’t like to own stocks where you could wake up in the morning and own nothing.
TOP PICK
You are getting the benefit of a management team who has proven their expertise in adding production and growth through acquisitions. It did not participate in the run. Name is not that well known yet. It got hit yesterday even though it was a non-event. $8 target factors in acquisitions we don’t yet know about.
TOP PICK
You are paying for the management team on this stock. These guys are experts in oil. Brought production from 525 bpd up to 4000 through acquisitions.
TOP PICK
Still likes it. Likes it as a single entity that will split. $80 oil this time next year; $5-6 for Gas.
WAIT
Just went up 26%. They can decide to stop drilling for Gas and start drilling for oil. Buy 20% of what you want and wait 6 weeks on the rest. It will come off 10% in a month.
PAST TOP PICK
(Top Pick Sept 5/08, Down 9.6%) Happy about the split. No one pays any attention to their properties. You have more upside than you see in their stock price.
PARTIAL SELL
Great conventional assets. Decent hedge position, but balance sheet is rather hefty. It is a stock that you should trade because it is at risk of following the price of gas. If you own, consider taking some profits and then get back in later.
BUY
Diverse portfolio. Now is not a bad time to accumulate. You have the benefit of a lower multiple.
BUY
This company runs first and hard when the gas cycle starts. You need to trade this one or hold for 2 or 3 years. Phenomenal asset base. Likes it.
DON'T BUY
Should be one she loves, but when second quarter results came out they showed no penetration into the market.
HOLD
This is a stock you cannot judge by cash flow multiple. You buy by what the management team can do with the asset as they have done before. They have a lot of old equipment that is being overhauled. The cash flow will come in eventually. Take half if the quadruple has made it overweight in your portfolio.
WAIT
It depends why you are buying it. It’s pretty expensive. Let the market settle out if you are going to buy it.
SELL
These are great long-term gas assets. At this point in this gas price environment they don’t have the cash flow to drill a lot of wells.
BUY
Likes it. You don’t have capital expenditures for next 2 years. Nice distribution stream.
COMMENT
The rally in Natural Gas we have seen this month does not need to continue. The market was looking for the commodity that had not had a run yet. We are seeing some of the stocks price in what we see the futures curve looking like over the next 12 months. She thinks it is a bit aggressive. The rally could continue for another week or two. The fundamentals have not really changed in the last couple of weeks. Gas will not stay at the $2-3 level. It should hover around the $5-6 level.