I have been watching and reading about this stock. It looks unrealistically undervalued. Cash in the bank is as much as stock value. Book value 3 times stock price??? I see no need for equity financing (dilution) that wrecks so many good Chinses stocks.
Allwance for bad accounts, discounting inventory value, etc. are reasonable and all point to solid and conservative accounting.
Business growth deserves double digit PE multiple. Should be a $10 stock once the market balances all this...when is the question.
I have seen some Chinese infra stocks go south as the government is allegedly pulling back some of that expansion. Is that cloud hanging over this one?
Maybe some longs here can tell me if I am missing something.
RB. thanks for explaining alange
yes, EGY and TGA are also some of my favorite (though I have to say I don't know too much about oil stocks)
have you seen the canadian energy funds/oils that pay 10%+ dividend (they save money from not being taxed). some have fall apart, but some others still there and paying that much
I agree with you.. I'm also allocating some of my portfolio for play money and right now, I put it in YRCW, AWRCF and AOB for the play money (though I'm still doing long term strategy/hold for my play money)
As I mentioned, I have stock positions in my 401K account and it includes plenty of large oil explorers. With my "play money" I like to find stocks I cannot invest through 401K. I am particularly interested in companies that are exploring in under-explored areas of the world.
Alange is a $250MM company with a $75MM annual exploration budget. Columbia has been off-limits until recent political changes and the management has lots of experience in South America. Also, recent development of terminals and pipelines helps the transportation costs. They are following the same growth pattern that trippled the price of GTE in a year. Downside is they have too many shares, but that will ultimatley be corrected.
In these locations there is more chance of bonanza-type finds. For instance, in last month ALNGF.PK announced a discovery allowing them to nearly double reserve estimates in one of their biggest fields. That does not happen much in known fields. As a native Texan I guess I have a little wildcatter atttiude, looking for the gushers. I also am not so excited about natural gas...just seems like there is alot of that being made available through technology. I get excited about black gold.
I have not gotten into Sundance DD yet.
I really like some of the companies you mention, but basically they are working in fields that are pretty well known. However, I am going to look hard especially at TGA and EGY.
Thanks and GLTY
rarely heard that (company voluntarily going to PK) but I've seen that a couple times before however and many of them did finally go private and redeem/buyout the remaining of the outstanding shares.
wow it was a buck and now $14.. amazing and the buy out price could be $30-$40..
should have load with the CEO back then.. :)
congrats nonetheless.. must be a big gain for you...
where did they get all the cash to do buy back. I see that they don't ahve much cash left and that they aren't that profitable recently.
PS: so many opporutnity out there.. which is good I guess..
Thanks again ace for the info on ALJJ
I might pick up some after I completed my DD (but maybe I will wait till it get off the PK list), but still wondering why are they in the PK and at least not in th OTCBB if they are still posting their quarterly earning result
I don't know if NOL carryforward will be transferrable to the acquirer. if it is then it will be really nice ($75-$100M worth of tax deferred asset)
I'll check out the guy who own 13% of the company. I haven't seen it/check it out.
it could be the best pick of the century if it is the case (being bought out, etc, or even back to OTCbb or be profitable again). I think someone should go there and check their business operation.
Stan, as to pink sheets, QEPC.pk went voluntarily onto pink sheets. They are a fairly good sized company and just bought out a flooring company. Not exciting but look at their earnings-wow. They are going to go private somewhere in the twenties or thirties. Look at what Stanley Tools paid for Black & Decker and you see that the raios put qepc in 30-40 range. Since the company went on the pinks they don't show insider buying, but look at what is still left on Yahoo. I watched the president buy all the way up to $14 before it fell to under a buck, where he bought 100k+. He owns a bunch and the company has been buying back some each quarter. A pop is inevitable. There is a good message board for them here at yahoo. Take a look.
Stan, don't know that last one YRCW, but as to aljj, the reasons are:
They have great management-recognized the coming economic sunami and took action-cut costs to the bone. Doesn't take much to breakeven.
They have a guy that is accumulating stock and must have an exit strategy. Has 13% of company and counting.
Company had eps of .20 a year ago then went through economic slowdown. Business starting to pick up again. Profits should follow.
Have net loss carryforwards of around $250mil. That is $5/share. Some big steel company will take them out soon. Consolidation in industry has started. Local company J Rubins was recently bought out by Metals USA.
Catepillar is a big customer and has announced that they are bringing manufacturing back to the USA.
I trust saadvisory has done their homework.
RB, here is a good message board:
Here is a pdf for Australia:
I would think their website would have something regarding Hungary and South Africa.This is from an email:
"folgf aussie total resource 390 billion bls[18 billion likey recoverable along with 64 trillion cubic feet of gas]"
If you ask any questions of Soly on the agora board he will have an answer.Good luck to you.
I will look into SRRY.ob. Thanks
RB welcome to AWRCF long club.
oil would be good btw. but why would you like pinksheet companies over BP or VLO, or if you want smaller company tere are company like EGY, TGA, BSIC, ASPN, PDO, etc.
are ALNGF.PK and SDCJF.PK are big companies and just ebcause they are international based they are listed as pink sheet? or ADR?
I'm just trying to learn about this PK stocks.
ACE...thanks for the tips.
I do think that there is a future in exploration cos. in unconventional locations. I am having trouble finding the proven/probable reserves for the locations where Falcon is working and it looks like they have not updated anything in Hungary for a couple years. Can you help me with a link of the total reserves for this company?
As for ALJJ.PK...I will look into that one. I have been leaning toward SRRY.OB (Chinese waste management - recycling co. with unlimited growth prospects) in the industrial sector. GLTA
RB, welcome aboard. My O&G pick is Falcon Oil&Gas. I buy on the pinks-folgf.pk, but I believe it trades much more on Toronto as FO. Huge resources in Australia, Hungary and South Africa. Guy that took Ultra Petroleum from $1-$200 is behind Falcon. They are about to drill in Australia and are looking at JV's. Have 15 companies in looking at seismic data now. And as a small domestic steel company, take a look at aljj.pk, one of naga's picks.