₪ David Pescod's Late Edition April 30, 2007
OILEXCO INC. (T-OIL) $8.74 -0.03
BOW VALLEY ENERGY (T-BVX) $5.85 -0.12
DELPHI ENERGY (T-DEE) $2.22 -0.04
While it’s the last day of April and Oilexco was supposed to have production from Brenda announced by now, but still no news. Actually, production from Brenda was expected quite a while ago, but as in most resource developments, the one constant seems to be delays.
Today we caught up with Canaccord oil and gas analyst Fred Kozak who has been long the Oilexco story for quite a while and looked good for being bullish on the story. Today he suggests, the company is closer to production, but doesn’t look like it’s going to be today.
On his top three list he still has Oilexco as his number one pick with a $14.00 target (while Peerless is number two) and he suggests that Oilexco is currently drilling Huntington and when the Ocean Guardian rig becomes available, they should be drilling the Ptarmigan play as well.
Meanwhile, high profile analyst Josef Schachter has come out with his Maison Placements update on the oil and gas sector and the 40-page review of the stories he follows is always interesting. What we found that stood out was his top “International” pick for the last issue and mentions several times over the last year or two, Oilexco has been replaced by Bow Valley Energy (BVX). But he does say this about Oilexco… “We believe both of these stocks (Oilexco—his top international pick and Questerre Energy (QEC)—his top domestic pick) have imminent material events which should be catalysts for near term, large share price appreciation.”
Currently his top picks for domestic is Delphi Energy (DEE) a gassy stock that’s got more than a few problems with big debt and as far as an international play, it’s Bow Valley Energy.
Schachter’s reports are always interesting and well put together for easy reading. For those looking for a copy, e-mail Debbie at Debbie_lewis@canaccord.com.
ANDINA MINERALS (V-ADM) $3.44 -0.02
We have talked about Andina Minerals here mainly because Andrew Kaip, the mining guy at Haywood Securities had it as one of his top three picks and we also talk to Andina President Carl Hansen from time to time as well.
Now Canaccord analyst Steven Butler has started to cover this story and has come up with a very aggressive target today of $7.00.
He writes, “Three simple reasons why we rate Andina Minerals a speculative buy.”
1. The shares are fundamentally undervalued (basic market capitalization values the current resource base at only US$54/oz which is well below our emerging junior average of US$87/oz;
2. There is excellent potential for significant resource expansion; and
3. We view the company as an attractive M&A target in the
Maricunga district.
He writes, “Our target price of $7.00 is based on an in situ multiple method, ascribing US$85/oz to a potential 4.24 million ounces expected by September 2007.”
On the important part of “Investment Risks” he writes, “The principle risk associated with the Volcan project is its unknown metallurgical gold recovery factors, including reagent consumption and ultimate recoveries.” Detailed metallurgical work is expected to be completed later this year.
One problem that Andina had over the past while is lack of analyst coverage on the story as the stock has mainly been held by institutions and has been getting very little retail coverage. This might go a way’s in changing that situation. For a copy of Butler’s report, e-mail Debbie at debbie_lewis@canaccord.com. |
