David pescod mentions bmxAugust 24, 2009
For the Late Edition we try and interview and ask ques-
tions of a lot of the people that run oil and gas companies,
mining exploration plays, development companies you
name it. And there are more than a few market commen-
tators that are sometimes of interest. Bob Hoye editor of
‘Pivotal Events’, and it was more than a little scary what
he was predicting for down the road in last Friday’s issue.
First of all Hoye had been a little bit accurate over the
last year predicting the ugliness and then the rebound
and what he is looking for next is not what a lot of people
are hoping for...a lot of gloominess, a sell-off and the only
place to be is gold.
In fact the first time Debbie typed the interview she was
ready to sell everything and find a cave somewhere to
decorate for the coming gloomy times. After an interview
like that though you almost have to go out and find some-
thing pleasant to read that could get your optimism back.
If we had to suggest what the common consensus is
for what’s next in the market we would suggest it’s ex-
pecting a correction sometime in September and October
considering the huge run we’ve had and then as econo-
mies particularly in Asia, continue to perk up it will drag
other economies around the world up with it and hope-
fully we get back to better economies and stock markets
everywhere. That’s the consensus and the concern about
consensus is that it’s usually wrong...Over the last year
it’s been absolutely dead wrong. No one expected the
crash, very few expected the huge rally we’ve had so what
next? is a good question.
But if you’re looking for optimism, BusinessWeek
comes up with a special issue called “The Case For Opti-
mism” and there are twenty pages of interviews with mar-
ket monitors, business executives, professors and you
name it, all looking for what could make things a lot bet-
ter. The one story we found of big interest was Micheal
Bloomberg. In the article he wrote “After being laid off
from a wall street job in a downturn, I started Bloomberg
as a four-person company with the aim of building a com-
puter terminal that could give up-to-the-minute financial
information to analysts and traders. Today the company
employs 10,000 people.”
What he didn’t write of course is that Michael
Bloomberg became a billionaire because of that lay-off in
one of the previous recessions and is now the very suc-
cessful mayor of New York. Downturns and recessions
always offer opportunities and over the last few months
there has been huge gains recorded in the oil and gas
business and many others. At least amongst those that
didn’t go bust.
Painted Pony Petroleum
Page 2
David Pescod 780-408-1750
Debbie Lewis 780-408-1748
Fax: 780-408-1501
BANKERS PETROLEUM (T-BNK) $3.80 +0.06
PAINTED PONY
(V-PPY’A) $3.82 +0.10
Lots going on in the oil patch today with oil sur-
prisingly up, and Crescent Point buying out Wave
Energy in a big deal but also some divestitures.
We corner a probably exhausted Kevin Shaw of
Wellington West just back from Albania checking
out the Bankers story. We give him credit for his
big report of almost two months ago that con-
vinced Bay Street, Bankers was more than just a
production story but a reserve story as well.
Kevin’s comments to us today were seeing the
scale of their holdings in Albania, “it’s amazing”
he suggests “For a small company to get their
hands on an asset that big”. Now he says “it’s time
to get the wells down” and he suspects the oil is
there and that they’ll be drilling thirty years from
today on a resource that big. After seeing the pro-
ject he is reminded of what a poor job the Russians
and Chinese did when they were working there
years ago.
But we were looking on fundamental questions
like if you could only buy one stock today what
would it be and what are your best ideas for oil
prices in the coming times?
He figures for the next few years we could see
oil between $70 and $80 although there will be
spikes both ways that will give a person opportuni-
ties to take profits or get some cheap stock. As far
as if he could only buy one stock today it would
still be Painted Pony which he featured late last
week although Bankers is a close second.
He echoes again that it’s time for them to get a
lot of wells down and while he has a $4.50 short
term target it’s higher going forward assuming
things work out.
BELLAMONT EXPLORATION (V-BMX’A) $0.66 +0.01
We catch up with Keith Schaefer, editor of ‘Oil
and Gas Investments’ for his thoughts on oil and he
suggests that oil will be $72 this Christmas and $72
next. A price he suggests “That’s okay for the pro-
ducers, okay for the MidEast and it’s also okay for
the economy.”
As far as what oil and gas stock he would buy
today if he could only buy one he echoes a recent
selection in his newsletter of Bellamont which has
had recent success on it’s Grimshaw Montney oil
discovery and has also had some intriguing addi-
tions to its board of directors.
DEB’S DITTY:
How is it one careless match can start a forest fire, but it takes a whole box
to start a campfire?
E-mails out today for those with Coastal Energy which is probably one of the stories of the day for the
next little while as far as exploration is going and Bankers Petroleum. For those looking for new account
information e-mail Debbie and for anybody who has some good Deb’s Ditties please send them in as well
.
Disclosures:
Bankers Petroleum: Canaccord Capital covers this stock and has a Hold rating on it. (Hold: The stock is expected to generate
risk-adjusted returns of 0-10% during the next 12 months.)
Bellamonte Exploration