(7)
December 15, 2012 11:59 am
Not sure if this stock has been mentioned here, but it seems like a no brainer for recovery in the New Year after heavy tax loss selling ends. At 11.5 cents it is trading with a market cap of about $54 million which also equals its' cash plus restricted cash less debts. Thus basically trading at cash. Prior to the tax loss season it was trading at about 16 to 17 cents, so a recovery would give about a 40% return from the current price, but that is just the minor upside part of the story.
PDQ also has a blue sky type of upside to it. It is fully funded through 2013 for exploration and has 5 blocks of oil and gas property in Columbia.
PDQ is currently awaiting the results of two important drill programs. One is CPO-5 which is currently drilling with results coming, given the company is trading at about cash, there is little downside risk, but lots of upside potential if the well hits oil.
Then there is the Talora well which was already drilled and is awaiting testing. This well could have huge upside as the drilling results showed multiple intervals to be tested. The well was drilled to a depth of 7,282 feet, and encountered a sand, silt and shale section 2000 feet thick with multiple hydrocarbon bearing sandstones. PDQ has a 65% interest in the block. The upside here could be substantial and again, if it does not work out, the downside risk is limited.
In my view, this stock has it all, lots of cash, cheap price, low downside risk, a discovery to be tested that is not priced in, a well currently drilling and lots of activity coming in 2013 on 5 oil and gas blocks.