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Connacher Oil & Gas Ltd CLLZF

"Connacher Oil and Gas Ltd is an oil company engaged in the exploration and development, production and marketing of bitumen. Connacher holds two producing projects at Great Divide are known as Pod One and Algar."


GREY:CLLZF - Post by User

Bullboard Posts
Comment by longnose2on Jan 12, 2012 2:35pm
858 Views
Post# 19397558

$2 possible on much stronger operating earnings

$2 possible on much stronger operating earnings

Aside from what Nuttall did or did not say, things have improved considerably since last summer when the share price was in the $1.50 range.

 

Cll was then trading off its 2010 record Ebitda ( ie operating earnings ) of $92 million.

Things got a bit nasty with the EU debt crisis forcing many funds to sell their commodity holdings ate firesale prices and CLL did not escape this nasty downturn.

 

However, things turned around in Q4 when bitumen prices increased by more than 50 % and drove CLL's quarterly Ebitda to record levels in excess of $40 million.

 

2011 operating earnings are now going to come in at the $140 million level.

 

Ebitda prices have remained strong and an Ebitda of at least $165 million is forecast for 2012.

This is nearly double that of 2010 and should move CLL well past the $1.50 level this year.

 

Lets not forget that, under Gusella, CLL had no effective IR program.

 

Even if  CLL does not get sold, you can bet that the Activist holders will be giving orders for plenty of stock promotion and analyst upgrades.

 

For this reason, one might reasonably expect that a price range upwards to $2 would be a realistic expectation for 2012 , on much stronger operating earnings.

Bullboard Posts