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

To: Serge Collins who wrote (6275)	4/16/1999 11:09:00 PM
From: kingfisher	Read Replies (1) \| Respond to of 24892

Here is a small excerp of Westlinks Website (lots of information at their site,U.S $ 25 potential for oil before cycle slows down again). The Market Value of Oil and Gas Company Common Shares In December 1998, the Westlinks common shares traded at a small fraction of the underlying value of the company. Although the stock rebounded once tax-loss-selling pressure abated, this significantly undervalued condition caused Westlinks to examine the 450-member peer group of companies in the oil and gas sector to determine if the Westlinks‘ situation was unique. Westlinks constructed a proprietary database of this peer group for further review and analysis. As a result of these reviews and evaluations, Westlinks believes that the 1998 oil price crash has caused an inefficient market to emerge as compared to the relative efficiency of the marketplace experienced historically. Although the oil price crash has resulted in reduced cash flow for virtually all companies, in our opinion, it appears that certain stocks, those that have strong institutional support, have remained over-valued relative to the reduced cash flow of those particular companies. Conversely, companies with a shareholder base comprised of individual investors, investors who may have needed to sell for some reason (tax loss reasons, loss of job, margin calls, people who only hold stocks for quick flip), were vastly undervalued. The market had apparently become less efficient at pricing individual companies than it had been when oil prices were stable. Also during the course of the year, liquidity of stocks in the oil and gas sector was significantly eroded, particularly for the small cap companies. With the caveat that any classification of any particular company is dependent of circumstances at the time of the appraisal, we moved forward evaluate and classify our 450-company peer group. As a result of the information gathering and interpretation process, Westlinks has determined that there were several distinct segments or classes of companies within this 450-company peer group. We have classified these segments in terms of companies that were highly debt levered and those that were not, companies that had strong, long-life oil and gas assets and those that did not, and companies that had strong management teams in contrast to those that appeared to be struggling.