RE: RE: RE: RE: huge drop today.I generally have been trying to stay somewhat conservative so I had some Encana - now Encana and Cenovus. I am also a fan of Imperial Oil - a well managed and profitable oil giant. Nexen is another interesting company. However, it is hard to ignore the leverage you can get with junior oil and gas stocks. The problem is picking likely winners.
I think our old friend iamwcw, who blogs here at Stockhouse, seems to have a pretty good eye for stocks that I would never have heard of - Diaz being one of them. As you can see, however, the potential leverage works both ways with heart stopping drops in share price if the market does not like the news. Nevertheless, I think the long term holds promise, but we are looking at a 12 to 18 months from now, assuming that Diaz will slowly and steadily increase production. The thing with heavy oil is that everyone knows the stuff is there - it's getting it to the surface that's the problem since the oil does not flow well and sand and water inflows can add to the problems.
OTOH Diaz also has natural gas properties that are waiting in the wings and they have been busy with pipeline permits. Perhaps we will hear more news on that front, or perhaps they are just lining up the regulatory paper work for when gas prices hit a level Diaz likes.