David Pescod''s stocktalk (PBG mentioned)e-mail: debbie_lewis@canaccord.com m e-mail: david_pescod@canaccord.com October 16, 2007
OILEXCO INC. (T-OIL) $17.50 -$0.39
PETROBANK ENERGY (T-PBG) $44.90 -$0.05
ITHACA ENERGY (V-IAE) $3.55 -$0.04
GULF SHORES RES. (V-GUL) $0.26 +$0.03
That was the smiling, happy face of Peter Hodson you
saw yesterday on the Business News Network and you
can understand why he’s got to be a happy guy. The
Sprott Asset Management Fund that he helped initiate
roughly two years ago, saw a 44% return over the last 12
months, which puts him (by far) into some of the top performing
funds you can find anywhere in North America.
He’s been in resources, a sector that has definitely had
a big owie over the last couple of months. I suspect one
stock that he commentated on amongst many on the BNN
interview (go to www.bnn.ca, watch past videos, Monday,
Market Call 12:30 AM ET to take in the show and particularly
the Oilexco comment at about 33 minutes into the
interview) and in the interview on Oilexco you heard him
give a target of roughly $30.00 for Oilexco.
In the last few days, we mentioned how Schachter is
upping his potential targets for Oilexco. The gossip in the
marketplace surrounds just how big the Huntington discovery
might be.
But back to Hodson who tells us last night that despite
the big run up in the price on Oilexco, he suggests “the
stock remains quite cheap” and suggests that
“Huntington isn’t the only play people should be talking
about” and suggests that as it approaches a $4 billion
market cap, ownership of the company is shifting into a
different type of investor. That type of investor he suggests,
is looking at the right circumstances lining up,
which would mean the stock is trading at only as little as
1.8 times cash flow. In our conversation, he reiterates a
$30 target.
On the Business News Network show, he picked these
three as his favorites: 1) Points International (PTS) 2)
Hanfeng Evergreen (HF) and 3) Seabridge Gold (SG).
When we asked him to pick three natural resource
stocks, he goes with Oilexco and Petrobank Energy and in
the gold sector where he is a big bull and wouldn’t be surprised
to see gold go much higher, he goes with Yamana
Gold (YRI).
Oilexco Inc.
www.oilexco.com
Petrobank Energy
www.petrobank.com