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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (41647)	3/7/2011 3:15:43 PM
From: Paul Senior	Respond to of 78753

I'll look again at it. I've added today to PXL.v yet again. This one may be among the cheapest oil stocks in my purview. Depends though, of course, on who and how one figures these things. For me: Basically, the company expects 1.9k-2.0k boepd production in 2011. That's to be 97% oil. Heavy oil. Which some people discount by maybe $20 per barrel compared to more desirable light oil. I've read other people say, no, no discount should be applied. I do not know. I show company with 40M fd shares and 12M in debt. At 2 bucks a share, EV = $92M (roughly). There are another 12M "special warrants" which can be converted @ $1.90. I'll just add that to the stock base and call EV $92M+$23M = $115M. 2k bopd for $115M. That's pretty cheap to me. I'm just not seeing numbers like this for any other Canadian company that's producing oil in Canada. Some negatives and some assumptions: I assume they can meet their production targets. (They did slip a little with 2010.) I'm not sure, but it seems like they have enough oil reserves to at least continue 2011 production levels in 2012. No pink sheet for this stock, so it has to be bought as PXL.v. Stock's already moved up recently. Seems to have stalled. Maybe that's now as far as the stock will go until positive production news is published.