Pacific Rubiales Energy Could Run Out Of Cash

  • The cash flow made by the company in the current oil environment won’t be sufficient for the given capex.
  • The weak Colombian peso saves money on operations but this isn’t controlled by the company.
  • The company’s management is mediocre with a quick ratio of under 1 for the last three years.
  • Altman’s Z-score is under or equal to 1.25 for the last three years, which indicates the company is highly likely to fail.
  • The loss of the Rubiales field will surely affect the oil production of the company and therefore its cash flows.

Click here to read the entire article on Seeking Alpha.

Time To Sell Pacific Rubiales

As you may know, I published an article on Seeking Alpha saying that I will sell half of my position in Pacific Rubiales Energy. Now, because of further evidence that the company is much more in trouble than I previously thought, I believe it is time for me to sell the other half of my position in the company.

While the offer made by Alfa and Harbour is fair in my opinion, I believe the offer has really no chance of succeeding. The recent stock movement also indicates that the market believes the offer has no chance of passing the vote.

Therefore, I believe bullish investors should sell their stock now before it is too late. I will publish a detailed article on Seeking Alpha in early July, after my vacations.

Disclosure: I am short PRE.

TransGlobe Energy: It Is Difficult To Get Technical With Stocks

Remember when I called a sort-term pullback in the price of TransGlobe on April 24? It turned out well, but not for the good reasons.

TGL June 10


The stock did break the C$5.40 mark. However, the stock experienced a strong pullback because of the 1Q earnings. Getting technical with stocks can be rewarding. In the end, my reading turned out to be right.

Expect the company to trade in the C$4.80 to C$5.30 range until the fundamentals of the oil market recover. Be patient, it is only a matter of time.

Disclosure: I am long TGL.

Corridor Resources: Unloved, Unknown, With 2 Golden Options

  • Corridor’s natural gas business in New Brunswick will be profitable, despite the moratorium.
  • The company has a pristine balance sheet, with no debt and over $23M in cash.
  • It has a quick ratio of over 29, which indicates absolutely no financial pressure in the short term.
  • The market is completely ignoring the tremendous Old Harry and Anticosti Island prospects.

Click here to read the entire article on Seeking Alpha.