Globe says Oilexco seen as underwater gem
Oilexco Inc (C:OIL)
Shares Issued 221,616,827
Last Close 7/31/2008 $16.33
Friday August 01 2008 - In the News
The Globe and Mail reports in its Friday that Shauna Sexsmith, who manages the Manulife Canadian Equity Fund, has a hard time understanding why Oilexco is not trading for more than its current $16.33. The Globe's Angela Barnes quotes Ms. Sexsmith as saying, "It makes no sense; the stock is worth $30 based on the earnings and cash flow numbers alone." She guesses Oilexco may have been lumped in with other North Sea oil plays, some of which failed. Unlike some of those other plays, Oilexco is doing well, with production expanding from virtually nothing a year and a half ago to 23,000 barrels a day this year and 52,000 next year. Ms. Sexsmith expects the company to earn $2.10 a share this year and $4.24 next year. Over all, she notes that energy and materials sectors have recently sold off, but she remains a big fan and is continuing to overweight them in the Manulife Canadian Equity Fund. "I still think it is the right long-term positioning," said the vice-president and senior portfolio manager with MFC Global Investment Management. "I think the long-term secular direction still favours energy and materials and not the financials." She notes analysts continue to increase profit forecasts in the energy group.
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