Date updated:04-19-2007
Brock Capital invests in stocks that price in the $2-$10 range and have a near term catalyst that can generate analyst and investor interest. These stocks tend to have limited coverage and are highly speculative in nature.

-
SNG
Canadian Superior - $0.5784
- -3.58%
- $0.57
The Positive: Canadian Superior is a small oil and gas exploration company producing about 3000 boe/d. This production allows the company to generate around $20 million in cash flow a year; if you assume a market value of eight times cash flow and stable gas prices you have a floor on the stock price at $1.30. This downward protection is accompanied by a significant opportunity for appreciation. Canadian Superior plans to drill three wells in a potentially high impact area off the coast of Trinidad. Other oil and gas exploration companies have drilled successful wells (300 to 600 mmcf/d) in this area and if Canadian Superior can strike a similar find they will be rewarded with a significantly higher stock price. Assuming a thirty percent chance of drilling success, which is projected to generate $4.00 in appreciate with a seventy percent chance of a $0.70 decline you get an expected outcome of $0.71. This risk/reward ratio is very attractive and makes Canadian Superior a stock purchase worth further researching. The Negative: Canadian Superior’s management consistently over promises and under delivers. Their ability to meet time schedules needs to be questioned and their overly optimistic press releases should be read with an objective eye. Conclusion: Keep a clear perspective on this stock opportunity. The stock presents a healthy risk/reward scenario, but this opportunity as strictly an “option” play on the success of the Trinidad drilling program. If it is successful sell into buying with a $6.00 target. If it is unsuccessful take the loss and expect an immediate thirty-five percent loss.
- No Videos Found
- Brock Capital's Blog
- No Blogs Found
- Top Professional Portfolios
- 1. Fidelity Contrafund - ...
- 2. Navellier & Associ...
- 3. Calamos Advisors
- 4. Argus Management
- 5. Charlie Munger
- show all
- Top Do-It-Yourself Portfolios
- » Joseph Russell Portfolio 1
- » Albo's First Portfolio
- » Darrell Werth Portfolio 1
- » Top 5 Small-Cap Stocks: N...
- » Echo5Joker's Portfolio
- show all
- Most Viewed Portfolios
- » Warren Buffett
- » George Soros
- » T. Boone Pickens - BP Cap...
- » Carl Icahn
- » Renaissance Technologies
- show all
By Roberto Pedone Posted on Nov. 27, 2009 According to Jim Cramer, investors need to know the four enemies of all bull markets. On Wednesday’s “Mad Money” TV show...
By Roberto Pedone Posted on Nov. 27, 2009 According to CNBC’s “Fast Money” traders, the adjustment in the third-quarter GDP figure released on Tuesday from an exp...
By Jonas Elmerraji Posted on Nov. 25, 2009 With Thanksgiving fast approaching, retailers have one thing on their collective minds: Black Friday. After all, the day, whi...
By Jonas Elmerraji Posted on Nov. 24, 2009 Don’t dismiss dividends right now. While stocks may have made significant strides in the rally that’s taken hold of the m...
A. I like the markets right now the stock
AM is a ok buy around 20.50 or under I
think there are better buys out in this
market besides AM I think if you wait
for another pull back you could buy some
in anticipation of the holiday season.
A. The only one I own : SLX,
too hard pick a winner out all of them
Here is a list of some of the companies that will report earnings on Monday (Nov. 30, 2009). For some of the companies below, EPS estimates* are provided. * Analyst o... more
Here is a list of some of the biggest stocks that hit 52-week lows on Nov. 27, 2009. more
Analyst Upgrades or Estimate Increases for Nov. 27, 2009. Read more here. more











Comments not available