Bobwins - I copied this from the RB board
What do you think of either of these picks?
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SME.V (Storm Cat Energy) being touted as a possible 50 bagger by Michael Shaefer ... anybody like this one?
To: Patentlawmeister who wrote (6460) 12/15/2004 12:52:17 PM
From: Crossy Read Replies (2) of 6751
Patentlawmeister - oils
well Oil is up bigtime today and I think I can answer your stipulation in an affirmative way...
Right now I like two firms very much, both are Canadian and both are undervalued under $50m marketcap each one.... both have producing interests and huge upside from things to come.
SME.V - Storm Cat Energy - C$4.00 - CBM (Coalbed Methane play). Producing property in the powder River Basin (USA), new acreage in Alaska recently leased plus Canadian acreage. Big upside in .. MONGOLIA !! (Say CBM for China). Around 16m shares outstanding. Their president is a GIFTED individual, Scott Zimmermann - the former "company builder" behind Evergreen Resources. He suddenly was with a pile of cash when EVG was acquired and no job duties to apply his skills on - so this is his new firm. Bill Powers of Canadian fame loves CBM and I clearly understand why. Would like to highlight that for CBM the "people factor" is way more important than for conventional oil & gas plays, since the completion and treatment techniques are an entire world of "black magic" without readily codified and available "generic" petroleum engineering skills readily at hand in an ubiquitous fashion.
Natural Resource speculator Michael Schaefer cited a $200 potential for SME.V should their Mongolian property be CBM prolific - potential in the TCF area. It's a vast area and China is the market next door - in dire need of natgas. Well $200 is of course very very optimistic. For me $30 would certainly be good enough. Kudos to Brinks for this great find..
KRS.V - C$0.57 Kroes Energy - Profitable UKRAINE producer - 35m shares out. Exit rate (projected) for 2004 around 450bopd. 10 MMBOE P2 reserves.. no exploration only development drilling risk so risk is very small here from an operational standpoint. Politically they have connections to all camps so it's not an issue. The governance regime in the Ukraine is very good. Netback is $18 on Brent $40 level. Not "russian" methods, no Excess profits taxes (amounts to confiscation to me), no Royalty, just 20% Value Added tax, 20% Corp. Taxrate and 5% dividend withholding tax. Free convertability of profits... will try to dig up more.. Kudos to Gary Grobbel for this great find !
I'm including both firms inthe "virtual" (for the time being) thread portfolio now at today's open... Both are different but very exciting !
hope this helps
CROSSY
