The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
RIG: Deeply Undervalued; Selloff Overdone
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ROBIN SHOEMAKER, Citigroup Global Markets
(06/11/2010)
"Continuous and unrelenting selling pressure on RIG since the Macondo well blowout has wiped out the gains the stock made after we added it to TPL on March 10, 2009 at $52.30 per share. Although the stock today is deeply undervalued. . . the stock remains vulnerable to market speculation and to legitimate concerns about further potential difficulties and complications in stopping the blowout. RIG has 14 deepwater rigs in the GOM today. . .some of the company's drilling contracts are at risk of cancellation under force majeure. Our estimate of 'at risk' contract backlog for RIG is $1.8 bn out of total company backlog of $27.9 bn as of June 1, 2010. Potential loss of revenue and profit is relatively small. Selloff Overdone, Capping of the Macondo Blowout May Spark a Recovery—We maintain our Buy/High-Risk rating on RIG shares because we believe that the stock is deeply undervalued, trading at only 63% of estimated NAV of $70 per share and at 5x estimated 2010 earnings of $8.60 per share. The stock may be unable to stage a sustained recovery until the blowout is capped, but it is almost certain to attract the attention of deep value investors when that occurs." |
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More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
"NXE is our top pick across all commodities." (12/22/15) NexGen Energy Ltd. - The Energy Report Interview with Rob Chang More >
"FCU will continue to explore and add pounds to what is already a world-class project." (12/22/15) Fission Uranium Corp. - The Energy Report Interview with Rob Chang More >
"EFR is well positioned to benefit from higher uranium prices." (12/22/15) Energy Fuels Inc. - The Energy Report Interview with Rob Chang More >
"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >