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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (4219)	11/27/1997 8:31:00 AM
From: HAZ	Read Replies (1) \| Respond to of 24913

Kerm / Oil & Gas Companies I agree with you in general but also remember that the market is a market of stocks and each one of them is a market of it's own. Take Orbit for example why is it going up when most other O&G stocks are falling, the reason that comes to mind is value, it's cheaper for another company to buy Orbit than to drill at todays current F&D & land costs. If the NAV is indeed around $ 2.00 and someone can take them out for 1.40 - 1.60 range, then they are getting a deal, increasing production and reserves at a decent cost/bbl. Considering that most O&G companies have done their equity issues, have safe debt levels and have their 1998 budgets and drilling already planned then any continued weakness in their shares should result in consolidation in the industry. This is where Canadian Conquest will shine, they will pick up either properties or buy out weaker companies with good land and they will increase production & reserves. In the end companies that can increase production and reserves at a low cost will increase cashflow and earnings and increase Net Asset Value. If their stock prices don't follow then someone will notice them and buy them out. This is our capitalistic system and I would be worried if this senario doesn't happen. As for me, I'm looking for exactly such stock picking opportunites and I'm buying for the long term unless the short term can give a good return in which case I'll take profits. I'll keep you posted if I find any opportunities. Cheers and good investing