GREY:DPGYF - Post by User
Comment by
zagorskon Apr 27, 2007 4:43pm
229 Views
Post# 12689028
RE: DO NOT SELL
RE: DO NOT SELL
What are the positives that you find to be most attractive?
It is useful to know why people are interested in DEE. Your opinion may offer new insights to some, confirm the opinion of others or a flaw in someone's thinking may be pointed out.
I find the following parametres attractive:
1. Bigstone - very early in this play and DEE has already spent $50m+ on infrastructure costs. Partnering with a senior is also helpful.
2. DEE's price is well below B.V. and NAV
3. 55% of 2007 gas production is hedged at a $9.00 floor.
4. Nice to see insiders buying in the $1.43 range.
As partial confirmation that Bigstone is a very desirable play I relate the following information: About 14 months ago I owned a company called Tenergy that was trading at $4.25. It was based entirely in N.E.B.C. and very close to Bigstone. It's only assets were land position and 3 succesful wells that had been drilled. At a time when gas stocks and gas prices were declining Tenergy was bought out by a private equity firm for $6.25 per share. Because of this I had been waiting for a chance to get into DEE ever since.
I will probably hold DEE until we find out how good the play at Bigstone really is.