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Strategies & Market Trends : Stocks to Watch -- Ignore unavailable to you. Want to Upgrade?

To: Al Collard who wrote (299)	11/11/2001 6:48:14 PM
From: Al Collard	Respond to of 592

Stock to Watch: PXV-t stockcharts.com[l,a]djcanimy[dc][pc20!b50!b100!b200!f][vc60][iUb14!Ll14!La12,26,9!Lp14,3,3!Lc20] From the Canadian-under $3.00 Stock-Picking Challenge thread. Found this story of interest courtesy of geoffb_si. Hi, Al: I'll take PXV.T (Petrolex Energy) for next week. Closed at C$.28 today (Friday). - Stock has ~70M shares out, of which 63% are owned by Northern Oil, parent company that trades in Norway (?). - Assets are 80% interest in Columbia oil field (Rubiales) with ~200M barrels of proven, probable and possible reserves. - On Oct. 23rd, Auburn Argyle offered to purchase PXV's 80% interest for cash offer of US$60M (minus US$3M PXV debt). Works out to about C$1.30/share. Parent company (Northern Oil) has stated that they will vote their shares in favor of accepting cash offer. - Key dates in transaction are (1) Nov. 16th (next Friday), when Auburn must complete DD, sign definitive purchase agreement, and make a US$3M non-refundable deposit to PXV; (2) Nov 26th: Auburn must deliver the balance of US$57M. Their agent in London, Cantor Fitzgerald, is attempting a bond float for the balance of US$57M; (3) Shareholder, regulatory and exchange approval by year-end. - Market doesn't seem to believe this transaction will take place. Cash offer is worth C$1.30/share. Stock closed at C$.28/share, which leaves a lot of arbitrage value. - Company has stated that, if transaction closes, BOD will decide whether to distribute or re-invest proceeds. If transaction doesn't take place, stock could trade back below .15, in which case I'll have to accept the title of "Stock Goat" for the week. I'm hoping for "Stock Guru" (ggggg) Geoff