The two stocks that I own on this list are Compton Petroleum and Petrolifera Petroleum. Compton once again dominates this list, mostly because its stock price has been down in the dumps while other oil and gas companies increase. I'm resigned to the fact that it looks like CMT will struggle for a long time but I am confident that the stock will once again regain form and be a $10 stock. Even at this low natural gas price, Compton's profit margin is only -2.5%. Once people realize that natural gas isn't like sugar and that its a valuable energy source, demand will outstrip supply and the new, leaner Compton will be making much more profit than it ever did when the stock was at $14 It just may be a few years from now.
PDP on the other hand has woken up from its slumber this week. Makes sense as it is far undervalued compared to South American peers like GTE. GTE's market cap is almost 20 times that of PDP's and it certainly does not have 20 times more worth in reserves. GTE in 2009 is where PDP will be in terms of production relative to company size in 2012 and you'll see the stock price rise accordingly.
Refer to the following reports from Jennings Capital to compare the two. You will need to create a Jennings Capital username and password to see them (its free):
PDP
GTE
While GTE is unquestionably better off, it is not 20 times better off than PDP and while GTE is pretty close to full value, there's a ton of unrecognized value in PDP's current share price. All because of the market's doubt in Richard Gusella's ability to get a deal done to start up Petrolifera's Peruvian land holdings. Click here if you are interested in further in-depth analysis of the oil and gas sector.
The 25 TSX-listed companies included in this ranking are as follows:
Advantage Oil and Gas Ltd - AAV
Alange Energy Corp - ALE
Alberta OilSands - AOS
Bankers Petroleum Ltd - BNK
Canacol Energy Ltd - CNE
Canadian Natural Resources Ltd - CNQ
Compton Petroleum Corp - CMT
Connacher Oil and Gas Ltd - CLL
EnCana Corp - ECA
Gran Tierra Energy Inc - GTE
Ivanhoe Energy Inc - IE
Nexen Inc - NXY
Opti Canada Inc - OPC
Orleans Energy Ltd - OEX
Pacific Rubiales Energy Corp - PRE
PetroBakken Energy Ltd - PBN
Petrolifera Petroleum Ltd - PDP
Petrominerales Limitada - PMG
Questerre Energy Corp - QEC
Rock Energy Inc - RE
Strategic Oil & Gas Ltd - SOG
Talisman Energy Inc - TLM
Terra Energy Corporation - TT
Transglobe Energy Corp - TGL
Vero Energy Inc - VRO
Price to Earnings
| ECA.........11.0 |
| PMG........15.7 |
| CNQ........17.6 |
| NXY.........20.9 |
| Industry...25.2 |
| TGL.........30.9 |
| GTE.........36.6 |
| TLM.........47.7 |
| PBN.........47.8 |
The companies not listed do not have positive earnings at this time.
Price to Sales
| CMT..........0.5 |
| OPC .........0.9 |
| CLL...........1.1 |
| PDP..........1.6 |
| TT.............1.7 |
| NXY..........2.0 |
| ECA..........2.2 |
| RE............2.7 |
| VRO.........2.8 |
| TLM..........3.4 |
| OEX..........3.5 |
| AAV..........3.5 |
| CNQ.........3.6 |
| PMG.........4.2 |
| Industry...4.4 |
| PBN.........4.8 |
| ALE.........5.2 GTE.........5.5 |
| PRE.........5.8 |
| TGL.........6.8 |
| BNK.......16.2 |
| CNE.......18.6 |
| SOG.......19.3 |
| AOS.......22.3 |
| QEC.......35.0 |
| IE ..........45.7 |
Price to Book
| CMT........0.1 |
| OPC........0.2 |
| PDP........0.4 |
| ALE.........0.8 CLL ........0.9 |
| OEX........0.9 |
| TT...........1.0 |
| AAV........1.0 |
| AOS........1.0 |
| PBN........1.2 |
| ECA........1.3 |
| VRO........1.3 |
| NXY.........1.5 |
| RE...........1.5 |
| QEC........1.6 |
| TLM.........2.0 |
| CNQ.........2.1 |
| GTE.........2.5 |
| IE ............3.1 |
| Industry...3.2 |
| SOG .......3.8 |
| PRE........4.4 |
| TGL.........4.8 |
| BNK........6.2 |
| CNE........7.2 |
| PMG........7.3 |
Price to Cash Flow
| CMT...........2.4 |
| TT..............4.3 |
| NXY...........5.0 |
| PDP..........5.4 |
| VRO..........5.9 AAV..........6.2 |
| TLM...........6.7 |
| PBN..........6.8 |
| RE............7.0 |
| CNQ..........7.2 |
| ECA..........7.8 |
| GTE..........10.7 |
| PMG.........11.7 |
| Industry...12.1 |
| OEX.........12.4 |
| PRE.........13.2 |
| CLL .........13.9 |
| TGL..........21.3 |
| BNK.........34.3 QEC.........93.0 |
Profit Margin
| PMG........23.76% |
| ECA........16.47% |
| CNQ........15.58% |
| NXY.........9.95% |
| PBN.........9.13% |
| Industry...6.16% |
| CLL .........6.26% |
| GTE.........5.31% |
| TT............0.03% |
| BNK........-0.23% |
| CMT........-2.53% |
| TGL.........-8.54% |
| TLM........-11.11% |
| PDP........-15.09% |
| RE..........-15.35% |
| PRE.......-24.03% |
| AAV.......-24.23% |
| VRO.......-31.92% |
| OEX.......-49.56% |
| QEC......-114.82% |
| ALE.......-138.51% |
| AOS......-150.25% |
| IE .........-159.65% |
| SOG......-170.42% |
| CNE......-209.05% |
| OPC......-212.85% |
Disclaimer: The source of my information is TD Waterhouse Market Research services as of January 15, 2011. I own positions in Petrolifera Petroleum and Compton Petroleum.
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