Union reiterates Strong BuyAn update today from Warren Verbonac at Union.
DevelopmentsTunisia is undergoing a change of government.
CommentsThe departure of Tunisia’s president has been a newsworthy event, and the uncertainty during the last few days has resulted in the country’s stock market index, the Tusise, retreating about 13%. By comparison, Winstar’s stock is off 17.5% from its high before the political incident.
The CS Sil 1 location, is scheduled to commence testing this week, subject to the availability of the contractors. The location is in a remote part of the country, well away from populated centers in the north where the demonstrations and protests have occurred.
Valuation and RecommendationNear term uncertainty is creating a buying opportunity in Winstar, which is scheduled to commence the testing of a high impact well – the first of up to 11 possible similar structures.
We are maintaining our Strong Buy recommendation and Target of $7.50, based on the potential of the upcoming test results.
https://www.union-securities.com/CMResearchFiles/1_189_Winstar%20Resources%2001%2018%202011.pdf