Casey's Energy Report says sell Novus EnergyCasey's Energy Report says sell Novus Energy
Ticker Symbol: C:NVS
Casey's Energy Report says sell Novus Energy
Novus Energy Inc (C:NVS)
Shares Issued 168,960,312
Last Close 12/2/2011
.81
Monday December 05 2011 - In the News
Casey's Energy Report in its Nov. 23, 2011, issue, says sell Novus Energy Inc. at 81 cents. The newsletter said buy on Jan. 19, 2011, at $1.05, and again on July 26, 2011, at 90 cents. Assuming an investment of $1,000 for each of the two buys, selling the $2,000 investment yields a loss of $355. The writer is worried that oil, currently $100 (U.S.), might plunge, taking down a lot of marginal producers. In preparation for this storm, he wants to trim the "fat" in his portfolio to include only companies with proven management, cash reserves and no significant amounts of debt. That means the end for Novus. The combination of Novus's debt and its slow development make it expendable. He wants to focus on companies that do not have significant debt but do boast cash reserves sufficient to pay for their exploration and development plans over the next 18 months. The company is financing its development plans through debt and recently increased its credit facility from $40-million to $60-million. The company has done well at the Viking light-oil project in the Dodsland area of Saskatchewan. It is on time and budget, and production is on the rise. In uncertain economic times, however, follow your investment rules, he adds.