I guess this answers the rhetorical question of whether Thom has any pride
-----------------------------
Message: I am sending this at the request of several subscribers.
Shares of
Ivanhoe Energy (IVAN) sold off in the wake of the CITIC equity pact.
Some large investors used the news as a liquidity event to withdraw.
Many of those deep-pocket investors got into the shares in or around
the same 95-cent level originally recommended by The Calandra Report.
I spoke today with the company's principals, including Sunwing's
Patrick Chua in Beijing and its largest shareholder, Robert M.
Friedland, who was in Hong Kong. Ivanhoe Energy's directors believe
the company deserves more credit for some of its exploration rights
and assets, including natural gas sites in China's Sichuan Basin.
The question anyone who bought the shares recently must ask is: Can
the company advance production fast enough at all of its sites -- in
California, the Dagang oil fields, Texas, Sichuan Basin and in Wyoming
via the venture with Derrick Oil -- to accelerate cash flow? Also,
will events in Iraq proceed fast enough for the company to unveil some
participation in production improvement efforts in that war-torn
country? These are the same points brought to subscribers in the past
several days, weeks and months.
Finally, at what level will the company act on its $100 million shelf
registration in order to raise money for what I believe will be a
formidable purchase of an oil and real estate asset in the United
States? I believe several institutions are lined up for placements in
Ivanhoe Energy.
That's it for now. I was a buyer of more shares of Ivanhoe Energy
today (Wednesday) at $4.48 a share -- even though I was an eager and
satisfied buyer at 95 cents last spring. I cannot forecast the future,
but what I can promise is that owning a piece of something that could
become a perpetual partner with China on oil and gas development
efforts will not be easy at these levels. If you cannot take the heat,
wait for the next $1 opportunity -- or 25-cent one, as the case may
be, if you are comfortable with diamonds.
I also can promise that based on intensive, on-site research, there
will be other opportunities in the areas of energy, natural resources,
biomedical and electronic software distribution and management, and
that only subscribers to The Calandra Report will get those
opportunities in a timely fashion. These are along the same scale of
profitable strategies that have made many subscribers and followers of
The Recommended List robust returns these past eight months. Extremely
robust.
For some technical words on the stock of Ivanhoe Energy, see the Thom
Calandra's StockWatch today on CBS MarketWatch.
Thom Calandra owns shares of natural resources companies
Atlas-Cromwell, Bitterroot Resources, Caledonia Mining, Ivanhoe
Energy, IMC Ventures, Nevsun Resources and Victoria Resource. Thom
also owns shares of Entree Gold, Sunridge Gold, Pacific Minerals,
Sparton Resources and Gold Marca Ltd. He owns shares of diamond
exploration company Tahera Corp. He is an owner of shares of
MarketWatch.com, the publisher of this newsletter. Thom owns shares of
Intraware, an electronic software manager, and he owns shares of
Cardima, a medical device developer. He owns GigaMedia, a Taiwan
Internet music and service provider. He owns the Australian dollar in
a revolving six-month certificate of deposit. He considers nearly all
of these investments highly speculative.
Thom Calandra
The Calandra Report |
