₪ David Pescod's Late Edition December 22, 2006
STOCKS FOR UNDER THE CHRISTMAS TREE: For Mom: In a family of high risk/high reward people that love big excitement, mom is the one who goes in for the meat and potatoes. It’s probably been a good deal over the years that she has felt that way, because her finances are in pretty good state. For her under the tree, she is hoping that Santa brings some shares of Oilexco (OIL) and Connacher (CLL)—two that she hopes are steady eddies, but do have some pleasant surprises.
For Julie - the University Student: Julie discovered gold, silver and precious metals a while ago and since then she just loved the metal ever more! Under the tree she is hoping that she can get some silver jewelry and to go with that some shares of Silvercrest (SVL) and Andina (ADM).
For Gramps - the Patriarch of the Family: He is an old-time drill-push and he has seen over the years what a big discovery can do for a family’s finances. But, now that their not so dependant on him for his financial support, he is looking for excitement big time! He is hoping that Gulf Shores (GUL) comes in with their play in the North Sea, so he is looking for some shares of Gulf Shores and he is also watching Sussex, New Brunswick for Corridor Resources (CDH).
For Uncle Sherman: Uncle Sherm is the accountant that also does much of the family’s bookkeeping. Great sense of humor, but then again, for the gift giving, you don’t want him as the person you are exchanging gifts with. The number-cruncher figures that uranium and zinc will be the place to be for next year, so Uncle Sherm is hoping Santa Claus drops off some shares of Forsys Metals (FSY) and Blue Note (BN).
For Dad: Dad loves the big plays out there and because he always makes sure that there is just enough of the family wealth held in safekeeping, is he is able to go out and be adventurous once in a while. For Christmas, he’s hoping Santa leaves some shares of Corridor Resources (CDH) and Delta Petroleum (DPTR) under the tree for him. He is aware of the risk, but he’s looking for the huge, huge potential return. And he’s also hoping Santa brings some cold weather with those share certificates!
For Brother Bobby: Brother Bobby has more Patience than someone only 19 years of age should have. He has learned from watching his Grandfather make money that things don’t happen overnight. They take time. For not having a big stock portfolio yet of his own, he is still hoping Santa Claus will add to it by adding a few shares of CGX Energy (OYL.U) to his growing portfolio of risky stories and some Condor (CN), just in case.
OILEXCO INC. (T-OIL) $7.03 +0.07
These days, if you have an exciting oil and gas exploration play offshore Trinidad, Angola, the North Sea or for that matter the Gulf of Mexico, that’s all fine and dandy, but you are probably having one heck of a time trying to find a key component...the offshore rigs that can drill those plays. Witness the article in Bloomberg’s yesterday where they talk of the huge Jack discovery in the Gulf of Mexico. There are no rigs available and can’t drill until July. Oilexco has been in a great position over the last year or so because of a long term commitment they had signed at decent prices to lock in the use of a rig. It enabled them to invite themselves into joint ventures that they might otherwise never have had a chance to enter into.
Today they announce that they are joint venturing with Diamond Offshore Drilling for a semi-submersible rig on a one year contract that could be extended until April 2009, starting in April, 2007.
This means that they’ve tied up another one of those central ingredients for oil and gas exploration—the rig. It will be interesting to see what additional projects they might be able to enter. On the other hand, they have signed on the line for a quarter of a billion dollars U.S. and that means they had better find some oil in those joint ventures...and lots of it.
In Josef Schachter’s latest monthly, Oilexco is his top international pick.
If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com |
