Compton Petroleum
Toronto symbol CMT, produces natural gas in Alberta.
Long-time readers know that we are constantly reevaluating our stock picks. Below are three stocks we think you should sell.
Two of these companies face problems that will weigh on them for the foreseeable future. The third is a thin-trading stock that has moved up recently after moving sideways since 2008. Its growth prospects now appear limited.
KINGSWAY FINANCIAL SERVICES $1.31 (Toronto …read more »
COMPTON PETROLEUM $1.25 (Toronto symbol CMT; SI Rating: Speculative) (403-237-9400; www.comptonpetroleum.com; Shares outstanding: 130 million; Market cap: $162.5 million) has dropped its plan to sell the company. In February, 2008, Compton initiated a strategic review in response to repeated requests from its largest shareholder, New York-based private equity firm Centennial Energy Partners. Centennial holds a 19.8% interest in Compton. In …read more »
BIRCHCLIFF ENERGY $5.21 (Toronto symbol BIR; SI Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 112.4 million; Market cap: $585.6 million) is focused on oil and gas exploration, development and production in northwestern Alberta’s Peace River Arch area.
Last year, Birchcliff paid Compton Petroleum $263.3 million in cash for light oil production and drilling prospects at Worsely. The light oil assets complement Birchcliff’s …read more »
DEVON ENERGY CORP. $123.05 (New York symbol DVN; SI Rating: Speculative) (405-235-3611; www.devonenergy.com; Shares outstanding: 446.2 million; Market cap: $54.9 billion) is one of the largest U.S.-based independent oil and gas explorers and producers.
Devon’s properties are located mainly in the United States and Canada and, to a lesser degree, various regions outside North America. The company has sold its …read more »
COMPTON PETROLEUM $11.56 (Toronto symbol CMT; SI Rating: Speculative) (403-237 -9400; www.comptonpetroleum.com; Shares outstanding: 129.1 million; Market cap: $1.5 billion) will now conduct a formal review of its business plan and strategic alternatives to enhance shareholder value. This could include potential asset sales, strategic alliances, joint ventures, mergers or the sale of the company.
Compton initiated the formal review in response …read more »
BIRCHCLIFF ENERGY $8.98 (Toronto symbol BIR; SI Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 95.8 million; Market cap: $860.3 million) is focused on oil and gas exploration, development and production in northwestern Alberta’s Peace River Arch area.
In September 2007, Birchcliff paid Compton Petroleum $263.3 million in cash for assets at Worsely, with 3,500 barrels of oil equivalent production per day (78% …read more »
COMPTON PETROLEUM $11.50 (Toronto symbol CMT; SI Rating: Speculative) (403- 237-9400; www.comptonpetroleum.com; Shares outstanding: 129.1 million; Market cap: $1.5 billion) now gets about a quarter of its production from crude oil and liquids and three-quarters from natural gas.
Now the company plans to sell all of its oil properties and produce only natural gas. It expects natural gas prices to strengthen …read more »
DELPHI ENERGY $1.85 (Toronto symbol DEE; SI Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 68 million; Market cap: $125.8 million) is engaged in the exploration, development and production of oil in east-central Alberta, and natural gas in northeast Alberta and northeast British Columbia. Natural gas makes up 84% of the company’s daily production.
In the three months ended March 31, 2007, Delphi …read more »
COMPTON PETROLEUM $11.69 (Toronto symbol CMT; SI Rating: Speculative) (403-237-9400; www.comptonpetroleum.com; Shares outstanding: 128.2 million; Market cap: $1.5 billion) produces oil and natural gas in Alberta.
In the three months ended September 30, 2006, Compton’s revenue fell 13.9%, to $124.9 million from $145.1 million. Cash flow per share fell 19%, to $0.47 from $0.58.
Compton’s average daily production rose 13.1% in the …read more »
Most junior oil and gas stocks are now trading near their lows for the year on investor worries that oil and natural gas prices will remain low, or even drop further.
Oil now trades at around $61 U.S. a barrel, down from the record high of over $78 that it reached in July this year. Still, global demand for oil continues …read more »
