Stock pick for 2014~~ Marquee Energy skwef or mql.v
Jones Energy (jone) New Buy Recommendation~ see brief.
CCNI- Command Centers (ccni ) ~recommended @ .21 now .38- remains strong buy rating and anticipate once tax selling is over that share price will rebound. We believe that fourth Q will net betwen .03-.04 and for the year anticipate around .07. We also believe that a major temp. service company will buy the whole company for around $1.00 during early 2014. CCNI in our opinion is a keeper!
The stock market has risen from a low of 6500 (March 9th, 2009) to an all time high of 16,200 (December 20th 2013. We would never have been this high if we had actually had a normal economic recovery. The extremely low interest rates would not be happening right now if governmental policy had not been over burdening business expansion. Obamacare in my opinion, has been the major factor that has kept us in the trenches. It took years in the making and has been a total failure. Business has ZERO clue how to deal with it~ so they really never hired or built new plants. During the next few years the interest rates will remain low because the business climate will stay "flat-line". Obama has over regulated and actually dislikes Capitalism. Why would he like it or understand it~ He never had a business or a real job!
The wealth created from this fire breathing market has been one of the only real drivers in this "flat-line" economy. The low and middle class has been hurting for years now because of lack of jobs, higher taxes and now higher healthcare costs. The rich and high net worth investors have made a killing in this market because of cheap money, cheap assets, political safety and limited alternatives. This group has been the driving force for this up and down flat-line economy for the past 5 years. In our opinion, nothing is going to change until we remove this "nanny state" over-reach that this current administration continues to expand into every aspect of our lives.
I want to thank you Mr. President for being such a poor leader because if you had been a positive force for America interest rates would have been much higher and the stock market would be much lower. So keep up the good work!
****STOCK PICK FOR 2014*****
MARQUEE ENERGY MQL.V or SKWEF (.73)
Marquee Energy is a small & rapidly growing light Oil & Gas E & P drilling in Southern Alberta, Canada. The company recently purchased additional acreage and production within their core " Michichi" holdings. The current exit est. for 2013 is 4500 boepd and early est. for 2014 exit rate is around 5100 boepd. After the recent asset purchase and "flow -thru" there are 84 million shares fully diluted and outstanding. Management has issued cash flow est. of .46/sh or 1.6x CF/SH for 2014 ( very cheap valuation). At present P1+ P2 (NPV 10%) equals around $254 million and exit debt for 2013 of around $64 million. At present MQL.V or SKWEF trades @ only 1/3 NAV (very cheap metric). Marquee for it's size has a huge stable of drill sites with plenty of potential for continued reserve upgrades. The core acreage has over 160 drill sites and this does not include other acreage.
We believe that management will engage quite aggressively the investment community during early 2014 in order to expand market awareness in the US and Canada. More eyeballs means greater likelihood that the share price will move dramatically from current levels.
Another cheap metric based upon Marquee's exit rate of 4500 boepd is the "price/flowing barrel of pnly $28k/barrel. This value when compared to its peers indicate another example of just how cheap Marquee energy shares are trading and just how undervalued they are @ current level.
Please visit their website, www.marquee-energy.com and review the current presentation and recent press for a greater understanding of this severely undervalued asset.
We rate Marquee Energy with a Strong Buy and believe that we could see 100-200% appreciation during 2014.
Portfolio of stocks recommended from March 2009 (review Dec 12 for other closed positions)
symbol****price*****current Price*** opinion**
cenjf*****5.64****17.75***Buy Out 2/14
sd**5.53**S 1/[email protected]**5.93**Strong Buy*
bexp****3.95***36.50***Buy Out 2012**
ssn***.59* S 1/[email protected] S bal .48***
We also have several other positions between $3-4
dragf***7.35* div 1.15**9.35**Buy**
egdff***4.31****S @ 1.71
enytf****7.90****7.58**.16 div**Strong Buy**
Jone*** $14.91***New Recommendation**
Jones Energy (JONE~ $14.91)
Anadarko and Arkoma Basins of Texas and Oklahoma
IPO 12,500,000 @ $15.00-July 2013
Fully diluted A+B shares 49.3 million shares
$900 million in acquisitions since 2009
Jones drilling history- 452 Horizontal wells , 9 HZ targets
Currently operating 10 rigs
2529 drilling locations
27% management & 47% financial sponsor ownership
Best in class operator in Cleveland & Woodford~spud to Total depth.
Recently completed $195 million acquisition.
Current production- 21,900 boepd
84 MMBOE proforma reserve
Rev and income est. have been raised to $384 million and $1.80 for 2014.
In our opinion, JONE during the next few quarters will attract greater investor awareness, which in turn will elevate share price.
Barclays and Stifel are recent brokerage firms that have a Strong buy rating and overall target price of $22.00. A far cry from current levels of $14.91.
We like buying stocks before the herd races over to the field and starts to elevate the share price.
We rate JONES ENERGY WITH A STRONG BUY RATING @ CURRENT LEVELS.
OIL & GAS DRILLING PROGRAM THAT SHOULD BE CONSIDERED!
The oil and gas industrial group as a whole came in 3rd to last- Gold stocks being the worst. The only problem is that nobody told our selection of Oils about under-performance!! Just to name a few "hot" picks~ hes, clr, oas, sn, tplm, axas,bxe, mhr, kog,zptaf,cwei,spgyf and cenjf (buy-out).
Investors with all this profit from this vast stable of winners from 2013 should consider owning part of the next Oil and Gas Drilling program.
Those of you that bought into the "Texaco fee" just received their first check! The Myska is going to drill right after the "West Sandy Creek project".
The Myska 3 well project has already drilled 1 of 3 and has been completed & the first checks will flow within a few weeks. The larger Myska will be drilled right after the West Sandy Creek.
The West Sandy Creek is currently being sold & we have reserved 10 points for S. A. Advisory investors.
This well will be spud towards the end of 2013 & completed within the first few weeks of 2014. This is the 2nd well drilled in this area & is almost a shoe-in for success. The first well encountered casing issues after only producing a few weeks of over 650 mcfgd on a 9/64' choke with flowing tubing pressure of 1506 PSI.
The West Sandy Creek has 3X the feet of producing sand and is updip. Seismic data indicates the proposed location will be about 26' high to the failed #1 and should fill the sand to the base. Based on comparison to the Sheridan Field and other nearby fields the reservoir is est. to have 960,000 BO and 662,000 MCFG Recoverable Reserves!
If the West Sandy Creek is successful the return potential is a very attractive 36/1!!!!!!! Food for thought: Consider 100 BO/d and 120 MCF/day the pay-out would be around 8.5 months.
If we achieve 150 BO/d and 180 MCF/d then the pay-out would be around 6 months.
Please keep in mind that these wells start out as gas wells and then turn into majority Oil production. The tubing pressure of this project is est. to be 1800 PSI and the length of the well is around 6000 feet. The decision to drill the West Sandy Creek #2 allows us the use of existing pipeline, tanks and other production equipment.
We really like this project and intend to purchase 1 point (1%). The cost/point is $20,130.00. The least that can be purchased is between 1/4 and 1/2 point. Investors should also keep in mind that the project offers a very attractive tax advantage.
For more information: Call Chauncey @ Energy Equities @ 1-800-811-2694 or 1-800-746 -4427 ( mention SA)
******OUR FAVORITE 7 OIL AND GAS STOCKS***
1.-SKWEF- stock of the year for 2014
2.-AXAS- just read the news- has to be #2- could have been #1
3.-tplm- this oil reminds us of a "baby" bexp! This management team knows how to deliver and read their presentations.
4.nog-- super cheap and a takeover candidate
5.jone- new recommendation and own a boat-load!
6.-mauxf- Nigerian Oil that just keeps paying .05/Q. When their pipeline finishes look out. Their last well is shut in with 6500 BO/D. Nigeria is not ND, but the rewards are juicy. To date .45 in div.
7.sd-new management and getting very lean-super cheap!
A. A non-oil- ccni (.38) - recommended @ .20-- this is a keeper and if you do not have any, you better nab some before it goes much higher! The fourth Q will be very strong and we believe as mentioned earlier that ccni is going to get bought out sooner than later.
B. Vegas style--mles .08 car leasing company- read the Q and press. Hedge fund put up huge coin and we believe exposure coming soon!
@. sdcjf- junior oil and gas bringing a class of shares to the Global NASDAQ. Fully diluted results in huge potential of 600 million, but the cash horde and production is exploding. Has been a favorite from .16-- flat-line opinion.
We always appreciate the positive emails and of course the Obama supporter's that delete us from our mailing list.
Leaving for Montana in Early Jan 2014 for the usual ski trek! At present we have around 48 million vertical ft of skiing- looking for 1 million ft this season!
We have not been paid by any of the listed investments within this email alert. We may be buy,sell and or hold @ our own discretion.
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S A Advisory. 4700 S Holladay Blvd, slc, Utah, 84117 -phone 801 272 4761, 949 922 9986