It's been a while since we have had a new pick up on our ValueTrades blog. This is for good reason as the small cap market has been terrible, particularly in Canada, over the last few months. So it has been wise to stand back. However, we believe that we have found a gem that can move up significantly in price after a very lucrative partial buyout deal. We are up to 864 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. You can follow us on Twitter @StockTradePicks. We have nearly 4,000 followers on Twitter as well.
Condor Petroleum Inc. (CPI.TO) (CNPRF) announced that it sold its Shoba and Taskuduk Oilfields for CA$32.7 Million. This equates to a $0.74 per share price. The initial price action has been very good so far but has potential to move a lot more. The stock shot up 92% on Tuesday to $0.25 on just under a million shares traded. It followed up on Wednesday with a 4% increase to $0.26. Its thinly traded nature means it can to pop huge at any time. The timing of the deal should be considered very opportunistic given the recent hit on Saudi oil fields.
We believe that CPI will continue its run as the next near term catalyst will be receipt of the initial deposit within 10 business days of the deal being signed. This sale represents just one part of CPI's overall business so the stock should be worth more than $0.74, offset by the paying off of debts. The highlights of the release can be read here:
"Condor Petroleum Inc. (“Condor” or the “Company”) (TSX:CPI) is pleased to announce that its wholly owned subsidiary, Falcon Oil & Gas Ltd (“Falcon”) has entered into a binding agreement (“Sales Agreement”) to sell Falcon’s 100% interests in the Shoba and Taskuduk production contracts and associated field equipment for US$24.6 million (“Total Proceeds”) which, at the current exchange rate of 1.33 is equivalent to approximately CA$32.7 million. The Sales Agreement provides for the buyer, a non-listed international oil and gas group (“Buyer”) to pay an initial deposit of US$3.8 million (“Deposit”) within 10 business days of signing the Sales Agreement and the remaining amount is due upon closing the transaction.
The CA$32.7 million equivalent (at current exchange rates) of Total Proceeds equates to: CA$0.74 per outstanding common share of the Company; CA$11.90 per barrel based on the gross Company proved plus probable crude oil reserves as of December 31, 2018 less production to June 30, 2019; and CA$25.11 per barrel based on the gross Company proved crude oil reserves as of December 31, 2018 less production to June 30, 2019. See “Reserves Advisory” below.
The transaction requires various consents from the Government of Kazakhstan and is subject to the satisfaction of certain commercial conditions that are customary for a transaction of this nature. The transaction is expected to close in the first quarter of 2020.
The Company intends to use the sale proceeds to: pursue larger value growth opportunities within the region; pay down amounts owing under its existing credit facility; conduct additional activities to increase natural gas production in Turkey; and resume Kazakhstan exploration activities once the 630 day exploration extension is formalized for the Zharkamys Contract."
Disclosure: We are long CPI.TO
As we prepare for fall trading, we have to figure out what's next for Canadian Microcap stocks? TradeMiner identifies seasonal trends and market cycles and Microcap Millionaires finds the next big small cap plays in weed and other industries while Addicted to Profits makes trades from a Canadian perspective.
There are also some good books available such as:
Stock Investing for Beginners: Marijuana Stocks
Make Money Online With Cannabis Stocks: Learn This Basic Strategy and Build Wealth With Cannabis Stocks
Beginner's Guide to Investing in Canadian & US Pot Stocks
Marijuana Stock : Investing in Marijuana Stocks for Passive Income
How To Invest In Cannabis or Marijuana Stocks - Cannabis Investment Group
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
Condor Petroleum Inc. (CPI.TO) (CNPRF) announced that it sold its Shoba and Taskuduk Oilfields for CA$32.7 Million. This equates to a $0.74 per share price. The initial price action has been very good so far but has potential to move a lot more. The stock shot up 92% on Tuesday to $0.25 on just under a million shares traded. It followed up on Wednesday with a 4% increase to $0.26. Its thinly traded nature means it can to pop huge at any time. The timing of the deal should be considered very opportunistic given the recent hit on Saudi oil fields.
We believe that CPI will continue its run as the next near term catalyst will be receipt of the initial deposit within 10 business days of the deal being signed. This sale represents just one part of CPI's overall business so the stock should be worth more than $0.74, offset by the paying off of debts. The highlights of the release can be read here:
"Condor Petroleum Inc. (“Condor” or the “Company”) (TSX:CPI) is pleased to announce that its wholly owned subsidiary, Falcon Oil & Gas Ltd (“Falcon”) has entered into a binding agreement (“Sales Agreement”) to sell Falcon’s 100% interests in the Shoba and Taskuduk production contracts and associated field equipment for US$24.6 million (“Total Proceeds”) which, at the current exchange rate of 1.33 is equivalent to approximately CA$32.7 million. The Sales Agreement provides for the buyer, a non-listed international oil and gas group (“Buyer”) to pay an initial deposit of US$3.8 million (“Deposit”) within 10 business days of signing the Sales Agreement and the remaining amount is due upon closing the transaction.
The CA$32.7 million equivalent (at current exchange rates) of Total Proceeds equates to: CA$0.74 per outstanding common share of the Company; CA$11.90 per barrel based on the gross Company proved plus probable crude oil reserves as of December 31, 2018 less production to June 30, 2019; and CA$25.11 per barrel based on the gross Company proved crude oil reserves as of December 31, 2018 less production to June 30, 2019. See “Reserves Advisory” below.
The transaction requires various consents from the Government of Kazakhstan and is subject to the satisfaction of certain commercial conditions that are customary for a transaction of this nature. The transaction is expected to close in the first quarter of 2020.
The Company intends to use the sale proceeds to: pursue larger value growth opportunities within the region; pay down amounts owing under its existing credit facility; conduct additional activities to increase natural gas production in Turkey; and resume Kazakhstan exploration activities once the 630 day exploration extension is formalized for the Zharkamys Contract."
Disclosure: We are long CPI.TO
As we prepare for fall trading, we have to figure out what's next for Canadian Microcap stocks? TradeMiner identifies seasonal trends and market cycles and Microcap Millionaires finds the next big small cap plays in weed and other industries while Addicted to Profits makes trades from a Canadian perspective.
There are also some good books available such as:
Stock Investing for Beginners: Marijuana Stocks
Make Money Online With Cannabis Stocks: Learn This Basic Strategy and Build Wealth With Cannabis Stocks
Beginner's Guide to Investing in Canadian & US Pot Stocks
Marijuana Stock : Investing in Marijuana Stocks for Passive Income
How To Invest In Cannabis or Marijuana Stocks - Cannabis Investment Group
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
The dividend stock report from Dividend Stocks Rock
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
Goldmasterinvesting.com Ocean Of Gold Report for the top 15 gold mining companies
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
