S. A. Advisory - E-mail Update December 18th, 2012, S.A. Advisory 2012 results and recommendations.

S.A. Advisory E-Mail Update

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S.A. Advisory 2012 results and recommendations.


We remain very bullish towards Domestic and International Oils!


December 18th, 2012

We like NOG, CWEI & TPLM ( new oil investments~ especially NOG.
Low priced discounted value- Marquee Energy (mql.v or skwef) .80~ In our opinion, 150-200% upside potential during 2013 (Canadian Oil play).
We released this alert prior to the end of the World ( Dec 21st 2012 according to the Mayan Calendar) so as to keep you informed right up to the end!

We still have the "Fiscal Cliff" to avoid during 2012 . During 2013 we have Iran's Nuclear ambition, Syria's civil war, Egypt's potential civil war, Obama's continued war on Business and the so-called rich, the debt ceiling, high unemployment and our favorite government program~ OBAMACARE! Let us not forget the old but now very new war on GUNS!!

It is hard to believe that Obama believes that a single person making $200k/year is wealthy and that this small group of people will really help with our $16.4 trillion debt. Obama is a weak President for a weak country. We are a food stamp ( 47 million people on the "SNAP" program) nation and give free cell phones to people in exchange for their vote!

For those that are counting, we only have 1475 days left of Obama's reign. I assume that in 4 years the world will be more dangerous, our GDP will still be around 2% or less, Obamacare will cost twice as much as promised, Iran will have the bomb, the Middle East will be even more anti West and Biden will still be crowing that, " we saved GM and killed OBL!"

The USA did not get to this place in history overnight, but instead has been a slow and steady march because of liberal ideals and the PC mentality.

We remain on the wrong track because the policy of high taxation will not energize this nation's economic growth .

We need to lower taxes, raise the age for SS and Medicare. We need to lower taxes for Business and reduce foreign aid to countries that are not really our friends (Egypt, Pakistan, Palestinian National Authority and others ), reduce government by 10% and get rid of Charitable deductions.

The funniest angle of this really bad dream is that the area of the economy that Obama hates the most is actually one of the brightest stars of our GDP~ THE OIL & GAS INDUSTRY! We are on our way to Energy Independence because of places like the Bakken, EagleFord, Marcellus and other areas of North America.

As mentioned in past alerts, Oil stocks offer investors organic growth, takeover potential and political risk insurance. We remain extremely Bullish towards the group and will continue to concentrate on finding "NEW" investment ideas that will help you get rich so you can help with the food stamps, free cell phones & political pork.

We also still believe that APWC is the CHEAPEST stock in the world and by the way it is one of our only non-oils!

Portfolio of oils stocks July 2009- Dec 18th 2012

symbol recom price price status

BB=strong buy, B= buy, H=hold, S=sell

cenjf---$5.64--- $19.74---BB

One of our top 5 favorites. Most likely bought out during 2013- target $30+

mauxf----.70-----1.67------H

sdcjf------.16-----.85------B

$171,000,000.00 in cash - because Australia over regulates public companies- this is dead money until merger happens. Still a favorite.

qep-----32.96----30.96---B

axas----.96----2.08------BB

Another top 5 favorite O & G that has been hit with above average tax selling. I believe that axas will have a stellar year in 2013.

Visit www.seekingalpha.com and review 12/17/2012 report on axas~ with boepd est. of 5,200 boepd for 2013 and annual est. growth of 20+%/yr and a highly undervalued stable of properties that can be sold~ we see little risk and only attractive upside for axas. We hold a large position in axas. Looking for the homerun.

visit website: www.abraxaspetroleum.com and review presentations and press.

sd-----5.23--sold 1/2 11.27 current price 6.48--- B

management could be overthrown by the mutiny hedge funds- stock is in play.

ureyf----.25-------.09-----BB

only Russian oil in portfolio~ will eventually get taken over at much higher prices. This stock is extremely cheap based upon oil reserves and production~ visit Urals website~www.uralsenergy.com

cmt.to----.72------.12---sold

erx-------25.00 ----51.71---B

cll.to---.83-------.22 ---sell

bexp--3.95-----36.50---sold

useg--2.75---1.67----H

kog-----1.28----9.22---BB

If you want a pure Bakken play kog belongs in your portfolio. Their property is in the sweet spot and this company delivers. Tax selling candidate has hurt this stock recently, but we believe that a major will snag them sooner than later!

ssn--.59---sold 1/2 3.83--.72--H-

aez--6.44---sold @ 7.53

bp---40.00----42.02---B

wres---3.33---2.65--BB

We like this stock @ current levels- see little risk on the downside- strong fundamentals.

dej---.30-----.21--H--

gmrx-5.37---sold 1.29

etkef---.18---.06---H

skwef---5.60----.80--BB

We like it down at current levels and believe that a 200% appreciation is very possible during 2013. See brief within this alert!

sxprf 5.95 sold 6.25 sold

bxe---5.60----4.16---BB--

bxe or bxe.to is extremely undervalued. Another favorite in the Canadian Oil fields- just recently released a very positive press release. Should recover after tax selling and make new highs and actually could easily be bought out!

Visit their website and review the current press and presentations. www.bellatrixexploration.com

pbkef---13.10----10.41--BB

Again, another takeover candidate and has been hit by tax selling. visit www.petrobakken.com and review the news and presentations. Also review www.seekingalpha.com for Dec 10th & 17th for Petrobakken. This is an extremely cheap Canadian oil that will be bought out sooner than later. We have owned pbkef for around 18 months and have received .08 div/month. Most likely worth $20-$30 - lots of news

Part II~ total Oil and Gas portfolio 2009-Dec 18th 2012

mhr----6.86-----4.09---B---

We have a number of recommendations on mhr and believe that via the leadership of Gary Evans that mhr will reward shareholder over the long term. Visit their website and review their presentations~ www.magnumhunterresources.com

hes--68.74---54.05---B

The street hates HES, but the prize might be spun off sooner than later, that is, the huge Bakken exposure. Regardless, HES will earn over $6.00 during 2012 and 2013. Actually HES is a great O & G that is trading well off its 52 wk highs

cenjf---10.55-----19.74---BB--

Coastal is S A Advisory's largest portfolio position. Visit their site: www.coastalenergy.com and review their recent presentation.

oas---24.39----30.92-----B

As the Bakken continues to consolidate it is just a matter of time before OAS gets taken over.

sd---6.92-------6.48----B---

kog---5.58------9.22-----BB---

Visit www.kodiakog.com and review their current presentation. Earnings Est. for 2013 equal around .75 and over $800 million in rev. KOG is a core holdings! KOG is a top 5 holdings.

mhr---4.19----4.09---B--

cenjf--9.20----19.74--BB--

cpx---20.38---sold 34.46 --

clr---49.88---74.92--BB--

The King of the Bakken! visit www.clr.com and review the press and recent presentation. CLR 3 1/2 years ago hit a 4000 boepd well that started the game in the Bakken with their frac's. CLR will earn over $5.00 for 2013 with rev of $3.2 billion.

mhr---3.34----4.09---B--

dragf---7.35---8.50--BB--

Caspian Sea play with huge production and NO debt and giant cash horde with growing div. Recently completed $200 million buy back. Visit www.dragonoil.com and review the press and presentations. DRAGF is a favorite and should be purchased @ current levels.

saldf------2.60------2.75--H--

egdff-----4.31-----2.87---B--

Portable gold and oil and gas driller. Visit www.energold.com and review the site~ worth a small position.

wfref-- 4.53----4.93----B--

Changed name to Long Run Exploration after merger. Visit www.longrunexploration.com

Another Canadian O & G that is undervalued and will eventually get snagged.

spgyf--7.00-----8.58---B--

Another super cheap Canadian O &G. visit website www.wcap.ca

HK---6.40----7.33---BB---

Have to own HK for the double during 2013. The Captain of the ship ( F. Wilson) has the ability to snap his fingers and Wall Street comes running with HUGE CASH! He started Petrohawk a number of years ago and recently sold it for $12.1 Billion to BHP Billiton. Visit their website and review the news and presentations~ www.halconresources.com

This is the next Coastal Energy only it is a Domestic Oil and Gas.

HK is a top 5 favorite!

sn--17.91-----18.41---BB--

See last email alert for complete recommendation and review the recent press.

3 New recommendations

NOG--16.94------BB--

A pure Bakken and 3 Forks play that is trading well below it's 52 wk high of $28.00. Visit their site www.northernoil.com and review and listen to their presentations and also review their 3rd Q. NOG will also be bought by a major one of these days for double the current price. The est. earnings for 2013 equal $1.30 with rev of $415 million.

cwei--40.38-----BB--

O & G with holdings in Texas, New Mexico and Louisiana~ very diverse and integrated~ visit website www.claytonwilliams.com and review the press and presentations. Est. 2013 earnings of $3.32 and rev of $438 million with only 12.1 million shares outstanding. CWEI is trading near 52 wk low and well off the $98 high.

tplm---5.90----------BB--

Triangle is another pure Bakken and 3 Forks O & G play that should also be purchased. Currently trading well off the 52 high of $8.26.. Rev est. for fiscal Jan 14 equal $173 million with earnings of .56/sh. Review the recent Dec. 13th presentation via www.trianglepetroleum.com

We believe that CWEI, NOG and TPLM all have the potential for dramatic appreciation during 2013 because of organic growth. If the "Fiscal Cliff" is avoided more rapid appreciation may develop, but if we fall off then share price will most likely depreciate and offer investors the opportunity to average down. This "Fiscal Cliff' thing is the best kept secret that everyone knows about!

Marquee Energy Ltd (mql.v or skwef ) .80
Marquee Energy Ltd. is a Calgary-based junior O & G company currently focused on Oil and liquids rich gas production in Alberta, Canada.

During the 3rd Q skwef achieved record quarterly production of 2728 boepd, an increase of 79% over the prior 3rd Q. At present there are only 57 million fully diluted shares outstanding yielding a market-cap of only $45 million. According to financial data prepared by management there are Proved + Probable of 9.1 mmboe and NPV10 - $123.4 million. If we assign a $15.00/barrel valuation ($130 million based upon the 9.1 million ) it is easy to see that mql.v or skwef is extremely undervalued. This does not even take into account the undeveloped land ( 147,000 acres).

Recently the company sold some acreage and raised some $20+ million and used the proceeds to reduce debt and increase working capital.

Make sure that you visit their website and review all press and presentations. Their website: www.marquee-energy.com

The company is currently followed by 7 firms in Canada: Acumen,Dundee,Fraser,Macquarie,National Bank, Octagon and Desjardino.

The company also has a large Tax Pool of $100 million.

Almost every brokerage firm that follows skwef has a $2.00 target~ a huge appreciation potential from currently depressed levels.

Consider that during the fourth Q skwef will tie in another well before the end of the year. The company expects to drill 2 additional horizontal wells before the end of the year. It is also important to note that only 2 ot the recently drilled 8 wells at Michichi in 2012 were booked in the Company's reserve report at the last year end. The company also expanded its land position in the Michichi by adding an additional 11k acres. In October skwef drilled 3 Sparky wells and brought on production and plan on drilling 2 more wells at Lloydminster in Dec. and bring on production by year end.

We have seen year-end exit rates of over 3000 boepd and 3600+ boepd for 2013. The estimated CFPS for 2013 is est. @ .46/sh and with a share price of .82 one should easily see how cheap and undervalued skwef is when compared to its peer group. We should not overlook the seasoned management team run by R Thompson~ this is not his first rodeo!!

Overview: SKWEF has been beaten down by tax selling,weak Canadian junior O & G group and low volume. We see little risk @ current levels and believe that skwef could run up $1.50- $2.00 during 2013. We see increasing boepd, lower debt, increased credit line, streamlined operations and great CF. It is very possible that skwef could become a juicy target when you consider how cheap it currently trades. We rate skwef with a strong buy rating @ current levels for short & long term capital appreciation.

 

We have not been paid by any of the listed investments within this alert!

We may buy, sell and or hold any of the mentioned investments @ our own discretion.

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