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

To: RIK who wrote (5644)	12/2/1998 6:22:00 PM
From: samson	Read Replies (1) \| Respond to of 24927

ALL- Any thoughts on Gulf Canada as a buy out candidate?

To: RIK who wrote (5644)	12/3/1998 1:38:00 AM
From: Kerm Yerman	Respond to of 24927

RIK / Crestar Energy At the time when I loaded up on Crestar, I was hoping to see a minimum of $18 to $19 per share, or the equivalent thereof. The company announced in September that they would be acquiring up to 5% of their outstanding shares via the normal course issuer bid route. Shares at the time were about where shares closed today. ($13.35) Net asset value ending last year was about $19.25. Factoring asset dispositions and new found reserves, net asset value of the company will be a few pennies more than $20.00 ending this year. This is to give you an idea of how undervalued their shares are. Shares are selling for 66-2/3% of net asset value. So, who is to prevent a company, friendly or not, to offer shareholders a 35-40% premium offer to market price -- and walk off with a company whose assets are 10% more than the offering price. In fact, it may get even better for the predator because I think shares will drop a little further. If anyone is looking for a value play, Crestar is probably the better deal among those companies whose shares have dropped due to this oil price environment. I call this a better deal because the company just reported a good third quarter with a fourth quarter which should be better. 1999 is also shaping up to be a decent year.