Driehaus Capital Management Inc.
Buy And Sell
September 13, 1996
Canadian small cap specialist Brendan Kyne, portfolio analyst at Chicago's Driehaus Capital Management Inc.,is heavily overweight in Canadian energy comanies and gold-exploration stocks. "They are offering the best potential," he said.
Kyne assists in the management of the 20/20 RSP Agressive Equity Fund, which has assets totaling $365 million, and the 20/20 RSP Agressive Smaller Companies Fund with assets totaling $168 million. The two funds currently have 30% invested in oil and gas stocks.
Of the companies in the oil and gas sector, Kyne in particular likes;
BERKLEY PETROLEUM CORP.(BKP/TSE) $24.65 ($25.40--$4.25)
The Calgary-based oil and gas exploration company "is the fastest growing in the oil patch," Kyne said. It has a strong management team experienced in the exploration business. The company has had considerable success in Alberta and Saskatchewan.
Berkley should produce cash flow per share of $1.35 for 1996 and $3.25 for 1997. "It is not so much a call on the oil price, which should stay in the US$21/bbl range, but on production growth," Kyne said. The company is able to generate growth internally because of its large property reserves, rather than aquisitions, "which has become an expensive game," Kyne said. |
