Talisman (TLM)
Thanks for the kind words, Sarge. Here is my pick for the day.
Talisman Energy (NYSE:TLM) is grossly undervalued, mostly because of the "negative political energy" surrounding their Sudan concession. I believe Talisman to be one of the most undervalued E&P plays in the patch, and as the biggest major in Canada -- much larger than my little runts -- the downside risk is correspondingly lower, too.
The key to Talisman, IMHO, is production volume growth. Talisman's production growth over the last year has been *huge*, and this pace is expected to continue in 2000...
CALGARY, Alberta, Dec. 16 /PRNewswire/ -- Talisman Energy Inc. (NYSE: TLM - news) today announced new monthly production records for natural gas and oil and liquids.
Natural gas production during October averaged 1,007 mmcf/d compared to 787 mmcf/d a year ago and 844 mmcf/d during the third quarter. Oil and liquids production averaged 207,539 bbls/d, up from 142,603 bbls/d in October 1998 and 149,261 bbls/d in the third quarter 1999.
Total production averaged 375,000 boe/d during October, an increase of 37% compared to October 1998. By comparison, Talisman's production during the third quarter of this year averaged 290,000 boe/d.
"Producing 1 bcf/d is an important milestone for Talisman. Estimated cash flow in October was $140 million and we are on track for a phenomenal fourth quarter," said Dr. Jim Buckee, President and Chief Executive Officer.
"This growth will continue next year, with expected production of over 400,000 boe/d."
biz.yahoo.com
Top that off with very attractive commodity prices, and you have one exceptional investment vehicle. The negative politics surrounding the Sudan concession only presents an attractive entry point for someone wanting to take advantage of movement which will inevitably follow the company's next earnings report.
BTW, I don't think they're in any hurry to sell their Sudan concession. IMO, this will eventually blow over, and investors will begin to refocus on fundamentals once earnings gain more visibility.
Happy New Year!
Razor |
