Alfa And Harbour Buy Pacific Rubiales Energy For An Opportunistic $6 Per Share

  • Speculation ended last night as Pacific Rubiales is being bought at around $6 CAD per share.
  • This offer is at the low end of the valuation I discussed in my previous article.
  • With the oil market slowly recovering, I would expect better returns holding on to the stock for the longer term instead of letting go at this price.

Click here to read the entire article on Seeking Alpha.

Look For A Short-Term Pullback In TransGlobe Energy

TransGlobe Energy had a great run in the past month, following my articles on Seeking Alpha. However, on a technical point of view, you should expect a short-term pullback. As such, I believe it is time to sell the stock and buy it back in the short-term afterwards.

TGL StockCharts.com June 10

Source: StockCharts.com

Indeed, it seems that the stock couldn’t break the C$5.40 mark. Furthermore, the MACD is about to cross downward. The stock might test the 200-day moving average again in the short-term.

Disclosure: I am long TGL.

Pacific Rubiales – Preview Of Q1 Results

  • Oil sales from the first quarter will be around $786MM.
  • PRE will have a positive cash balance for the first quarter on lower capital expenditures.
  • There won’t be any debt maturing before the fourth quarter of 2016 with the new debt profile of the company.
  • PRE will increase its cash position by taking on more debt.

Click here to read the entire article on Seeking Alpha.

TransGlobe Energy Should Be On Every Investor’s Radar

  • Valuation compared to peers points to major upside.
  • The management team is prudent and of high quality, and is a great value creator for shareholders.
  • The plan to buy back 10% of the public float will provide a floor and boost the share price.
  • There have been fundamental changes in the way TGA can do its business and it will clearly benefit shareholders.
  • The management team is willing to look for potential M&A opportunities with high level of cash and a pristine balance sheet.

Click here to read the entire article on Seeking Alpha.

SNC-Lavalin Group Will Benefit From Insider Trading In The Short Term

  • Intense insider buying and the share buyback will provide a strong floor for the share price.
  • The Highway 407 concession in Ontario is a highly valuable asset, and the sale could raise cash for another acquisition.
  • There are still great headwinds that remains in the core engineering and construction operations of the company.

Click here to read the entire article on Seeking Alpha.

TransGlobe Energy Has Major Upside

  • TGA has a pristine balance sheet, with very low debt and high levels of cash and assets.
  • New government in place in Egypt is pro-business and favorable to foreign investors.
  • Discounted cash flow indicate a value of $6.81 per share, or more than 100% upside.
  • Net assets and oil reserves indicate a value of $10.77 per share, or more than 225% upside.
  • The 6% dividend is a nice bonus to help you wait until the market realize the tremendous value in TGA.

Click here to read the entire article on Seeking Alpha.

Pacific Rubiales Energy Is Safe From Bankruptcy

  • The financing costs for 2015 have come down to $235MM.
  • Realized price are higher than the WTI spot price.
  • Aggressive hedging strategy (60% of production) will minimize liquidity risks in 2015.
  • PEGFF needs a Brent price of under 40$/bbl to run out of cash.
  • From now on, with bankruptcy out the question, any news will be good news.

Click here to read the entire article on Seeking Alpha.

The Oil Market Fundamentals Haven’t Changed

  • The world oil market will be over supplied by over 1.2 million barrels a day in 2015.
  • The world demand growth for oil in non-OECD countries will be strong in 2015.
  • The US oil production is still expected to grow in 2015.
  • Oil market fundamentals such as US production and demand will need to change before calling the bottom.

Click here to read the entire article on Seeking Alpha.