IAE.to/IACAF - I am a long term holder, and bought more once this week and twice last week. I think it looks great as a purchase here, but that depends on whether they can bring the Greater Stella area on line in 2014 as planned. They have a lot of experience, and I expect they will be successful.
I have seen two analyst estimates of 2014 cash flow per share at 1.65 and 1.80, and the company sets it at 2.10. All of those numbers are above where the stock has been trading lately. That's pretty compelling, so I certainly want to hold or add to see how things go for the next year and a half. Here's the company presentation: http://www.ithacaenergy.com/uploads/20130326ithacaenergypresentation-fy2012resultswebsite.pdf
The people running the company don't seem to doubt that they can pull it off. A month ago, 7 insiders bought a total of 280k shares in the open market at prices above where it is trading now. http://www.canadianinsider.com/node/7?menu_tickersearch=IAE+|+Ithaca+Energy That's a vote of confidence that I pay a lot of attention to. They must think that the risks of failure in their planned operations are very small.
IAE.to is now my largest position in a concentrated portfolio with MMT.v now in 2nd place. 1Q earnings and a current production update should be out on Monday and we may begin to see the value of the Valiant acquisition. With decent execution, IAE could increase share price 50% in 6 months, a 100% in 12 months and 200% in 24 months if Brent oil prices can stay above $100. Disclosure: i am currently almost last in the Pick Six. GLTA
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