Updating our current recommendations for Oilexco and Ruby Tuesday Inc.

Article Excerpt

OILEXCO $0.08 (Toronto symbol OIL; SI Rating: Speculative) (403-262-5441; www.oilexco.com; Shares outstanding: 223.8 million; Market cap: $17.9 million) recently announced that its UK Oilexco North Sea subsidiary intends to file for bankruptcy protection. The UK subsidiary holds almost all of Oilexco’s assets. In December 2008, The Royal Bank of Scotland, Oilexco’s main lender, provided $47.5 million U.S. in bridge financing that was due January 31, 2009. This gave Oilexco just over a month to restructure. However, Oilexco said that it needed incremental short-term financing in addition to the bridge loan. In late December 2008, The Royal Bank of Scotland informed Oilexco that lenders were not prepared to provide any further financing, prompting the bankruptcy petition. Petro-Canada, BG Group plc and Talisman Energy have reportedly expressed interest in some of Oilexco’s assets. However, after seeking bankruptcy protection, Oilexco’s assets are likely to be sold at discount prices, leaving little for shareholders. Oilexco is a sell. RUBY TUESDAY, INC. $1.28 (New York symbol RT; SI Rating:…

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