Novus Energy Inc NOVUF

Casey's Energy Report says sell Novus Energy

[smithgee]

Casey'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.

[luckythor]

 I guess that is why there is "gambling", I believe that the oil price will remain between $90- 105 which will provide Novus with more than enough cash flow to handle their debt. If the warrants are exercised in 3/12 which I anticipate they will be, debt will be more than manageable. Also, a company with cash flow problems would not engage in buying back stock (5 million shares

[nlr2]

I may be wrong but I thought that Novus had very minimal debt? Also there is quite a few in the money warrants that must be excercised by next May for 16 millionish net to the company. This company is financially solid.

[davwal]

great company,buying back stock,targets are what they say,they dont go over on there estimates,etc,etc. Now what the problem is! to many people listen to nuttel on b.n.n. and jump in right away,drive the stock up,meanwhile,he has already purchased a massive amount at a low price,etc. it hardly ever fails! i was in this one a while back,never sold,wish the heck i would of,tho this is a good stock

[willard2]

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[willard2]

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[waffenss]

No help nor pills needed ratboy...best thing we've heard today from you...you won't be around...imagine all those folks that will shed tears over that eh Wilbert...where will you be niblin on some cheese????