Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
Cardiff Energy (symbol CRS on Toronto; www.cardiffenergy.com), is a junior oil and gas exploration firm. It first sold shares to the public and began trading in April 2012.
Cardiff holds interests in 15 producing oil wells, one producing gas well and three shut-in oil wells in the Lincoln County area of central Oklahoma. It also has holdings in other parts of the state, including seven producing oil and gas wells in the Garvin County area and interests in the Buzzard Sand oil property in Osage County.
So far the company has very little production: in the three months ended June 30, 2014, it generated just $45,547 in revenue from its interests in the Oklahoma wells.
The conservative approach to aggressive investing The investor’s dream—catch a rising stock that will pay off, and not come crashing down. That’s what subscribers to Stock Pickers Digest discover: rising stocks they can invest in with confidence. They get Pat McKeough’s conservative approach to aggressive investing, a search for hidden value that yields big gains without excessive risk. The biggest jump has come from Alimentation Couche-Tard since Pat made it his Aggressive Stock of the Year three years ago, up 368% and still reaching new highs. But each of his last two #1 picks have also achieved new highs. Pat will reveal his next #1 Aggressive Stock of the Year on Friday, January 23, 2015. You can be among to see his pick at a special price. As a new subscriber to Stock Pickers Digest you can pay just $70 and save 58%. Plus you will immediately start getting updates and recommendations on stocks making moves you should know about in our weekly Email Hotline. Click here to begin your no-risk subscription right away. |
Energy stocks: Positive oil and gas showings prompt more drilling
The shares rose from $0.05 in mid-June to as high as $0.25 in late September. That’s when the company announced that it planned to drill a well on its acreage in Runnels County, Texas. The shares have subsequently fallen back to $0.11.
The Runnels County well, called Bearcat #4, reached a depth of 4,045 feet and is now completed. It encountered oil in the following formations: Palo Pinto Limestone, Jennings Sand and Gardiner Limestone.
Cardiff now plans to drill an additional 10 wells around Bearcat #4 that will test the Gardiner zone, but even with positive oil and gas showings, the company remains at the very early stages of its development.
We don’t recommend Cardiff Energy. If you own the shares, we think you should sell.
