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Microcap & Penny Stocks : Benz Energy (BZG.V) -- Ignore unavailable to you. Want to Upgrade?

To: Whynotte who wrote (105)	3/28/1999 10:44:00 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 272

Whynotte, I agree, things are looking good for gas E&P companies. Are you a Benz shareholder? You may want to consider increasing your position this week given that the Fortenberry well has hit total depth and they are logging it as we speak. If both the H-5 and H-6 zones show pay the stock should go idiotic. If just one of them shows pay then it should still go up but not as much. True to form, the Big Seller dumped some more stock on Friday in anticipation of the logging results. This is not unusual for someone with a big position to trim before key news. It was obviously just one shareholder, since almost all the selling came from just one broker, PI, and most of it came in large blocks. This company is just a month or so away from producing gas at 30,000 mcf a day net. At this rate of production, for every $.10 an mcf that gas prices go up, they earn another C$.04 per share in annual cash flow. Put a modest 4 multiple on that, and you will see that this stock should go up C$.16 a share for each US$.10 that nat. gas prices increase. So if average nat. gas prices increase by, say, $.50 from here, that means Benz stock should triple from here, on no new discoveries! In contrast, TRIL has miniscule current production and would need to discover a huge amount of gas to be affected by increases in gas prices at anywhere the amount that Benz will be. Benz is thus a far better play on increased gas prices. A newsletter has written up Benz in its latest issue, which is being mailed as we speak. About a quarter million new investors will be hearing the Benz Story in the next few days. Benz has investor info. packs stacked up to the ceiling waiting to be mailed out to all the new Benz fans that call in. Hopefully they will also update their web site to reflect the latest releases and to show the Howell well producing at Oakvale Dome. That site will be getting tons of hits in the coming weeks as all these new potential investors try to learn more about this hot little O&G exploration stock. I know I've been waffling on this stock in the last few months, but I want to unequivocally state at this time that I feel the stock should be aggressively bought at these prices. If the logs show a healthy amount of pay on the Fortenberry, it would be time to back up the truck and load up at any price south of C$.60.