TOP TWENTY SELECTION UPDATE
Blue Range Resources Corp.
Stock Market: Toronto
Stock Symbol: BBR.A
September 7, 1996
Well, the reason for the big drop in share value has come to light.
The company lowered its estimates of production and cash flow per share fot the current fiscal year, which sent the stock tumbling to a 52 week intraday low of $7.00. Yesterday, shares closed at $7.50 on volume of 1.7 million shares. Just two weeks ago, analysts valued shares at $10.00 based upon cash flow estimates. However, at revised cash flow estimates, it is now worth about $6.00/share, analysts said. The company lost institutional support over the past two days. However, some analysts suggested that value players may pick up shares when the price reaches the $6.00 level.
Blue Range Chief Executive Gordon Ironside said the share-price fall reflects in part the departure of the company's VP of Exploration, who is well known in financial circles. he disputes the $6.00 value, pointing out that the net asset value puts the stock price at more than $8.00.
Another stock to watch for movement to the downside is Lexxor Energy,
who recently went public and trades on Alberta Exchange, symbol LXX.A.
The company is closely tied into Blue Range activities and shares the same officers and management. |
