OTCPK:ARNBF - Post by User
Post by
hardeeharon Apr 05, 2012 5:16pm
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Post# 19765298
Arcan off PI's Q2 Top Pick List.
Arcan off PI's Q2 Top Pick List. But they still have some good things to say:
Arcan Resources Ltd. (V-ARN, Target $10.00, BUY, SPECULATIVE risk rating. Potential return – 113%)
Our TOP PICK for Q112 was down 5.6% for the quarter. Retreating from an intra-quarter gain of ~25%, the stock has since sold-off on the lack of news ?ow and a perceived delay to the ultimate end game expectation for Arcan - its acquisition. With would-be-suitors, Pengrowth and Crescent Point preoccupied with recent acquisitions, a takeout seems less imminent. Likewise, an April 27th reporting date supports concerns that the Company is behind in its tie-ins of recent activity – although the of?cial explanation is to incorporate the Stimsol acquisition. Given the stock has traded down to $4.70; we believe this continues to be an attractive price-point to add to an individual position. With a 12-month target of $10.00, current pricing implies a potential return of over 110%.