Topic: How To Invest

Pat: Can I have your views on Junex Inc.? Thank you.

Article Excerpt

Junex Inc., $1.55, symbol JNX on Toronto (Shares outstanding: 43.0 million; Market cap: $66.6 million), is a junior oil and gas exploration company that holds exploration rights on more than six million acres of land in the Appalachian basin area of Quebec. Junex also owns roughly 7.9% of Petrolia Inc. (symbol PEA on Toronto), and 1.0% of Gastem Inc. (symbol GMR on Toronto). Its Petrolia holding is currently worth $2.9 million, and its Gastem stake has a market value of $349,000. Junex’s property is in the Utica shale region of the St. Lawrence Lowlands. Last April, Denver-based Forest Oil Corp. had favourable drilling results in this area. Forest Oil compared its results to the established Barnett shale play in Texas, and said that Utica could be more profitable because of its shallower depth and close proximity to gas markets. This news caused Junex’s shares to rise from around $0.70 to as high as $8 last June. By October, it had fallen…