₪ David Pescod's Late Edition March 19, 2008
ARISE TECHNOLOGIES (V-APV) $1.20 -0.11
During the bear market of the last while, we’ve been absolutely
astounded at how beaten up some stories including
some of our favorites have become. Who would have
thought an Oilexco could drop almost 50% or a Petrolifera Petroleum,
or a Corridor Resources or….the list goes on.
Given how topical green power is these days, another
one that is surprising us is Arise Technologies. Today they
announce that they’ve lost four cents a share for the last
quarter and have lost $4 million in the last quarter, but starting
shortly, they actually start production.
Today, Haywood Securities and analyst Ralph Garcea,
write up the stock and suggested that those negative earnings
were right in line with expectations. He still expects
full-year 2008 revenue to remain unchanged at $77 million,
points out that the German PV cell manufacturing plant is
opening in April and the 35 MW cell production line should
be operational on-time.
They point out that the financial position remains sound
and are receiving grants from the German government. Also
pointed out and one thing you like to see is their new CEO
has been granted 900,000 options at $1.60 meaning he is
going to have to make sure things happen if he ever wants
to cash them in.
Garcea has a target on the stock of $3.60 and it will be
interesting to see as production starts to wind up for April/
May, whether the market is there and more importantly,
whether people care about the stock.
As well as Garcea, Canaccord’s Sara Elford also has
hopes for the stock and she has a target of $3.75. For those
who would like to read her in-depth background report, email
Debbie at debbie_lewis@canaccord.com.
GOLD $945.30 -59.00
OIL $104.48 -4.94
GAS $9.11 -0.30
S&P/TSX COMPOSITE 12,721.37 -415.33
WAVEFRONT ENERGY (V-WEE) $3.17 +0.58
It’s a truly ugly day on the Toronto market, because all
of a sudden, at least for the day (and who knows what’s
coming tomorrow), it looks like we have a little bit of a
problem as someone burst the commodity balloon. Gold is
down and having one of its worst days in history, while oil
is down significantly and so is gas, and most commodities
are clobbered, as are the commodity related stocks, particularly
the fertilizer ones which have been absolutely
beaten up. It’s hard to find a winner on the screen, except
for Wavefront Technology.
We followed this stock off and on because Jim Letourneau,
of Big Picture Speculator, has been a big, big fan of
it, for a long long time, and it looks like his patience has
been rewarded.
We had Jim do an article for us on what the heck it was all about, and unless you are kind of a high techie-type person
its hard to relate to.
Today Wavefront announces another oil and gas company, this time in Fort Worth, Texas, that has decided to use
the power wave technology to try improve their oil and gas production. The company isn’t named, but obviously, the
market seems to care about this development as the stock flies on a day that most stocks are falling out of bed.
Nice call Jim!
ITHACA ENERGY (V-IAE) $2.66 +0.01
Yesterday, Ithaca Energy announced that the exploration
well on the Manuel prospect is in the process of being
plugged and abandoned ….oops!
Canaccord Analyst, Fred Kozak, writes “It’s a short
term negative, long term neutral. We had no attributed
value for this Manuel well in our valuation, and had a
risked value for the prospect in our exploration upside.”
He continues, “While, a successful well could have
provided additional asset value to the company, the unsuccessful
exploration well does not change our perspective
of the company long term, given its extensive
exploration portfolio.”
Kozak’s target remains the same at $4.50 and he
writes about the next catalyst exploration results from
recently spudded third appraisal well at Athena are expected
to be released in mid April. Positive results could
provide additional asset value to the company.
For those wanting to get a look at Fred’s report email
Debbie_Lewis@canaccord.com and the reason you
might want to, is to see the list of some of the prospects
they have in their portfolio and the size of them. For instance,
the Triton and Poseidon prospects are both in
the range of 100 million barrels but could be anywhere
between 95 and 500 for Triton and 50 and 500 for Poseidon.
Which is the good news. The chance of success in
exploration …….well you know that.
To receive the Late Edition and be on our daily circulation simply e-mail Debbie at Debbie_lewis@canaccord.com and give your address, phone number and e-mail and we’ll have you on the list tonight. |
