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
Since my January update a lot of events have taken place. GTE bought out PDP shortly after I compared the two and how undervalued PDP was. Subsequently, PDP has fallen from one of the most undervalued stocks to just above industry average while GTE has risen to just above industry average. You could gather from this information that the deal was appropriate.
CMT, OPC, ALE and QEC have been hammered since January. The three latter companies have run into financial issues as they have a very highn burn rate seen from their poor margins while CMT took a big hit to their book value thanks to a write-down of their reserves. CMT still heads the undervalued list while OPC jumps to #2 despite their bad margins as their price to book value and price to sales are extremely low.
I continue to remain bullish on CMT despite its stock performance. Although I'm thankful my other positions have made up for this dog, I cannot see how it can be lumped into the same category as OPC when it comes to distressed securities. CMT's debt load is much lower, CMT's burn rate is much, much lower (they're cash flow positive as we see in the table below) and they are operationally independant - OPC is dependant upon Nexen's operation of Long Lake for success. It might be best for CMT to sell as many natural gas assets they have, pay down as much of the debt as possible and focus on their oil assets. Their book value is already at firesale prices, so if they can get better than firesales prices for those assets, the stock price should increase.
Company | P/E | P/S | P/B | P/CF | Margin | Rank |
CMT | 0.0 | 0.4 | 0.1 | 2.0 | -2.53% | 557 |
OPC | 0.0 | 0.3 | 0.1 | 0.0 | -109.61% | 281 |
TT | 0.0 | 1.5 | 0.9 | 3.8 | 0.03% | 144 |
ECA | 15.1 | 2.4 | 1.3 | 9.1 | 16.90% | 122 |
CLL | 0.0 | 1.2 | 0.9 | 14.1 | 6.26% | 121 |
NXY | 23.0 | 2.3 | 1.5 | 5.6 | 9.88% | 120 |
PBN | 42.8 | 4.3 | 1.1 | 6.1 | 9.13% | 103 |
PMG | 15.2 | 4.0 | 7.0 | 11.2 | 23.76% | 102 |
CNQ | 19.1 | 3.9 | 2.3 | 7.8 | 15.58% | 101 |
PDP | 0.0 | 2.2 | 0.6 | 7.2 | -15.09% | 80 |
GTE | 34.9 | 5.2 | 2.3 | 10.0 | 5.31% | 65 |
Industry | 26.8 | 4.1 | 3.2 | 12.3 | 1.59% | 55 |
TLM | 47.1 | 3.4 | 2.0 | 6.7 | -11.11% | 53 |
RE | 0.0 | 3.3 | 1.8 | 8.5 | -15.35% | 35 |
VRO | 0.0 | 2.5 | 1.2 | 5.4 | -31.92% | 33 |
AAV | 0.0 | 3.8 | 1.0 | 6.8 | -24.23% | 33 |
TGL | 27.3 | 5.9 | 4.2 | 18.5 | -8.54% | 21 |
BNK | 0.0 | 15.6 | 6.0 | 33.1 | -0.23% | 16 |
PRE | 91.8 | 5.1 | 3.8 | 11.6 | -24.03% | -4 |
OEX | 0.0 | 2.9 | 0.7 | 10.2 | -49.56% | -13 |
CNE | 0.0 | 16.4 | 5.6 | 0.0 | -98.18% | -187 |
QEC | 0.0 | 24.7 | 1.1 | 93.0 | -114.82% | -201 |
ALE | 0.0 | 4.9 | 0.8 | 0.0 | -138.51% | -230 |
AOS | 0.0 | 18.7 | 0.8 | 0.0 | -150.25% | -265 |
IE | 0.0 | 44.8 | 3.0 | 0.0 | -159.65% | -309 |
SOG | 0.0 | 18.1 | 3.5 | 0.0 | -170.42% | -330 |
Disclaimer: The source of my information is TD Waterhouse Market Research services as of March 12, 2011. I own positions in Gran Tierra Energy and Compton Petroleum.
Click here to see some information on three Canadian oil resource stocks with tremendous potential
Click here to learn how to trade the forex market
Back to my blog
No comments:
Post a Comment