From Carl
Oil prices are rocketing higher and some of the analysts who have been predicting this event are suggesting we could eventually witness shortages of crude in the production cycle. If that happens I am willing to bet that every low priced oil producer takes off. PED was up 700% today. Why? Apparently because of this:
I have seen this happen before. If the market begins to push small producers higher it will be for any number of reasons. Let me list a few:
An active drilling program on an undeveloped property with lots of potential. An example would EGRGF. If the stock is discovered it could lead to a dramatic price increase quickly as traders and investors price into the stock the potential value of the property instead of waiting for the property to be drilled. I participated in events like this in the oil shock of the 1980’s and other times when oil suddenly starting moving higher. Traders will look for the next stock that has a chance of dramatic gains because it is seen as having speculative potential.
Undervalued oil reserves and underdeveloped acreage. GXOCF maybe an example of a company that will benefit dramatically with long term easily developed reserves.
Well managed and undervalued. IPOOF would meet this criteria.
Cheap because it trades in pennies and has a solid property with good cash flow and relative low debt. This would be MQXDF.
In today’s world it will also be about location, location, location. I would avoid any producer that is only active in the Permian. I would also avoid any stock whose cash flow is generated primarily by natural gas. But if you if can find oil producers trading at less than 3 times cash flow, with proven reserves and underdeveloped drilling prospects—it will be go for it time.
EGRGF, EGL.TO
GXOCF, GXO.TO
IPO.TO, IPOOF
MQXDF, MQX.V
Carl Who ?
Oil Juniors ?
why not ?
I’ve posted his stuff here before and at the Rambus site. If you weren’t imbibing so much you’d remember! LOL!
He’s a long time investor, only to become a multimillionaire by way of penny stocks.
He sends out about a dozen or more emails a day to anyone interested.
Oh now I remember
🙂
Affirmative……… 🙂