Balancing speculative value and holding for the longer term
PYRX, being the only stock in play today, has been mentioned a couple of times already this Monday. Here's a plug.
If his whole play is as big as we think it is, (even if, gasp!, Cal Canal didn't come through) all of the companies, or at least their interests, are likely to get taken out by big oil some months down the road Then what? Most investors will take their money and move on. But there must be at least a few of us, who for tax purposes if nothing else, are looking to stay invested beyond that time. While I own three of these stocks, I've tried to position myself (at least in part) for the longer term. Because the biggies, POU and BKP, do not offer the speculative value I wanted, I looked beyond them.
Of all the publicly-traded companies in this play, this is the shy one and the one we probably hear the least about. From time to time PYRX comes up here. S&P mentions it now and again, most recently today over on Stockhouse, lamenting that he wasn't around Friday to buy some at 4. (S&P--FYI, while 4 was the close, we saw that price only for the final minute. I grabbed some at 2 1/4 maybe a minute before that).
F9driver in post 5484 said: "I am mystified that PYRX has not hit a new high. Without hype...it has some of the best financials of the group. Lowest debt. Carried drilling interests etc. Low float."
I agree. But beyond that, what attracted me was that they seem to have a different business plan than the other companies. They, along with Armstrong, found this play. And that is what their core business is--finding properties like this, farming them out, and collecting a carried interest* (reference below). Whether they can do it again is anybody's guess, but I'm betting they can. I'm not foolish enough to think that any or all future successes will be on the scale of ELH, but they don't really need to be to score big if there are proportionally fewer players involved. Pyr's next projects are already lined up. I could be wrong, but that doesn't seem to be the case with most of the other small companies.
Pros and Cons, anyone? Other candidates for long term holds? I'm all ears (I know that should be "eyes," but it doesn't read as well).
Reference
sec.gov
In annual report, PYR's description of their business:
"The Company is an independent oil and gas exploration company whose strategic focus is the application of advanced seismic imaging and computer-aided exploration technologies in the systematic search for commercial hydrocarbon reserves, primarily in the onshore western United States. The Company attempts to leverage its technical experience and expertise with seismic to identify exploration and exploitation projects with significant potential economic return." |
