Hi Ed,
Before I answer your question, I must comment about the Benz play. If the new board members are reading this thread, please be aware that the shareholders interests are being closely observed by a legal group who makes money on those who abuse the elderly and senile investor. (Of which we all are...).
Yes, there are several other stocks that interest me. One of the reasons that Benz was called to my groups' attention is the unstated gas reserve values. For the most part, we are a mix of very sophisticated energy company execs (mostly former) and we see through the bull pucky. We've been raiders and we've taken from those who would have done better if left alone. We know the game.
The companies that are gathering reserves right now should be considered very intelligent strategists, for a multitude of reasons, too long to go into right here. The art of the pick is to understand who is making these decisions consciously. A lot of reserves are available at very cheap prices to those who have the talent and foresight to go in and grab them. There are various reasons, some of which may be a lucky or a well timed discovery, however, the company who owns both North American oil and gas reserves in the near term future will be the big winners of forthcoming events. Dependency is far out of line. It is also as profitable as investing in other winners who book their reserves offshore, however is most likely to ultimately be much more valuable holding NA asset based oil and gas stocks.
We are long in Chevron USA. Very large gas reserves. I too like Sharp, but I haven't done a lot of detail to evaluate their timing of debt, the biggest issue I have with the current discussion board, Benz. As you know Ed, I don't like to talk about others stock on others pages. But because of your earnest belief in Benz and the emotional price you have paid, I will share my groups pick. Besides, this page needs some excitement. We have four criteria when picking our focus, and too long of a description to go into. C.d and the gang are certain that we have found the biggest sleeper in many years, thanks to JL. They are an ASE company that because of their evolving size will be forced to migrate to a US exchange this year, due mostly to US shareholder percentages. They are debt free; have the largest proved reserve base on the entire ASE with the possibility of tripling reserve size in the next 1 year to eighteen months, (a very possible major contender in the US mid-sized independents). They have 100% wholly owned drilling, workover and field service companies. In addition to their fields, which they‘re doing a lot of work in right now, they have three major plays that are in their fledgling stage. They have large corporate officer ownership, not to mention leadership. They are currently overlooked by the investment community at large, however, have two of the largest funds in Canada taking or maintaining the largest portion of their portfolio legally possible. They have the respect of every oil and gas pro that comes in contact with them (including cynical c.d.) and are about to release major growth numbers in oil and gas production. Each of the three plays they are involved with they control. Each project is a company maker, from almost 11 times over current share price to as high as 32 times current price. They are also prepared to move into the next century, they are technically capable, very very capable. Key management are innovative and cleaver, however direct and sometimes too honest. Our hats are off to the steady hand of management, very cool and calculated. Committed, smart, know the business, have properties of significant value, no debt, own big portion of stock, service industry smart and deal makers, all married to the same wifes for life, not philanderers, and therefore can be trusted. Nothing will surprise me when these guys are done, we'd like to have them working with us.
As an old oil and gas pro, we couldn't believe our eyes for almost 2 months while we did our research and background. My hat is off to JL and his group of spotters for calling my attention to this page. This is the one to watch. Hegco Canada. HEG.ASE. This is a long hold but one to hold indeed! Quick upside, probably, but we believe that the institutions will be all over this company by year end. Between now and then, it open season to accumulate. We have accumulated a very large portion of this company's float in the last several months, and are currently authorizing to take more up to a price threshold, far in excess of where it is today. We have never been more bullish on a company in our combined 100 plus years of doing what we do. Now we sound like promoters, but far from it. We're just damn excited about something that hasn't happened in the oil and gas business but once in 5 to 10 years.
You asked me and I told you the way it is, like I always do.
The best to you,
c.d |
