₪ David Pescod's Late Edition May 5, 2006 - LOTTERY TICKETS
Lottery tickets, as everyone knows have a big return, but then hardly any are ever cashed in. You know the risk is high, but sometimes so is the reward.
So here goes our time to time lottery ticket selections and we will reiterate again, that any of the stocks mentioned here has to be considered of the very high risk variety.
Much of our own account has stocks that we would rate as risky, very risky or “are you out of your mind”. At least four of the following suggestions probably come from the latter.
So now that you’ve been warned...
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
PANTERRA RESOURCES V-PAN $0.55 $0.13 $.405 +.005 Jim Letourneau
If you are looking to speculate on oil and gas stocks that could make a difference, the first thing you want to find is one that has a big land spread and Panterra Resources has that. A million acres in Saskatchewan. That’s the good news. The bad news is that this is a shale gas play, it’s a bit of a step on the wild side and this company has no revenue and no cash flow, so big risk. Favored by Jim Letourneau of the Big Picture Speculator and Clive Stockdale, VP Corporate Finance at Canaccord and former oil and gas analyst with Pemberton, Dominion and Loewen Ondaatje.
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
GULF SHORES V-GUL $1.08 $0.08 $0.61 -0.03 Clive Stockdale
INTL. FRONTIER V-IFR $2.25 $0.80 $2.10 +0.14
The North Sea is still getting lots of attention these days, but one of the big problems is availability of rigs. Tiny Gulf Shores and a little bit bigger International Frontier are involved in what may be one of the biggest of the North Sea targets, if and when they ever get a rig. The target on the Quad 14 play is suggested by some to be a half a billion barrels. The market we believe will very much pay attention when that play finally gets drilled. But, if they hit…
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
STEALTH VENTURES V-SLV $2.76 $0.55 $2.44 +0.04 Jim Letourneau
Coal bed methane is relatively new to Canadians, but 10% of the gas in the States now comes from ventures like this. Once again, the company has no cash flow and big risk, but the assumption by many is that they’ve got more than a trillion cubic feet. The big question is how much of that huge amount of gas in Nova Scotia can be recovered. Stealth Ventures is Jim Letourneau’s top pick.
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
CORRIDOR RESOURCES V-CDH $6.24 $1.74 $5.42 -0.04 Andy Gustajtis
Corridor Resources has had a nice run already as they develop their McCully play in (of all places) New Brunswick. They still don’t have a lot of cash flow, but when pipelines are built and open probably by the fourth quarter of this year, this play will have some cash flow. The excitement comes around Christmas when they drill the deeper Dawson Settlement Sands. The seismic says that whatever is down there is huge, but it doesn’t say whether it’s gas, water or a weird rock formation. Andy Gustajtis currently with Dominick and Dominick gives it a one in four chance. Yes, the stock has done well recently, hasn’t it?
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
TG WORLD ENERGY V-TGE $1.50 $0.63 $1.34 +0.01 Clive Stockdale
The trouble with junior exploration plays is that nothing ever happens on time. Witness TG World Energy. They hope to be drilling with the Chinese National Oil Company on one of the big rift basins in Africa, actually in Chad. What was supposed to be looked at last summer then became last November and now it will be June or July of this year…...maybe. If you hit on these rift basins, they are enormous and meanwhile TG World has added an interesting play for this coming winter in Alaska.
NAME SYMBOL 52 WEEK HIGH 52 WEEK LOW TODAY’S PRICE FAVORED BY:
CGX ENERGY INC V-OYL.U $0.52 $0.21 $0.47 +.025 Clive Stockdale
If we’re talking about “lottery tickets” we are not too sure which lottery this will be for, whether it will be for this year, next year or whatever. As we have mentioned with Panterra, if you are looking for a big oil play CGX has nine million acres offshore Guyana. Also, they have experienced management with Kerry Sully who is Ranchmen’s ex-President. That’s the good news. The bad news? They have almost 100 million shares outstanding, little money in the bank and their major holdings in the exciting areas are involved with a border dispute with Suriname and to the north no one is sure where the border is with Venezuela, which is an area that has come up with enormous offshore gas discoveries.
Disclosures: Canaccord has recently led a financing for Gulf Shores Resources and TG World Energy.
If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com |
