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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (93801)	11/20/2007 11:08:42 AM
From: Umunhum	Read Replies (3) of 206093

Now is the time to deploy some capital for the heating season. Shoulder season is officially over this week. Oil has risen significantly over the last few months: futuresource.quote.com And yet the XOI has done very little: stockcharts.com Oil is up over 40% from its August lows. An equivalent performance for the XOI would put it around 1760. I don’t think this disparity can continue much longer. Especially in light of my belief that oil prices are heading significantly higher. So the next question is how do you play this? I know that many on the board here like the COS junior companies. And I believe there is merit to that strategy. However, I still favor multi-billion dollar companies with current production and the financial wherewithal to implement their business strategy. I am up to my gills in COSWF, SU, CNQ, ECA, NXY and PWE. NXY has been a laggard and has some catching up to do. So I picked up another 12,500 shares. I also purchase 30,000 shares of TLM. If it’s good enough for T Boone, it’s good enough for me. TLM's latest investor presentation forecasts production growth for the next several years sealed the deal for me. That and I read a CIBC report projecting $5.46 of cash flow for 2008 based on $68 oil. TLM’s production is approximately 60% oil and so I wonder what their cash flow will be based on $100 oil. I think they are currently selling for significantly less than 3 times 2008 cash flow.

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