Topic: How To Invest

What do you think of Rock Energy on the TSX?

Article Excerpt

Rock Energy, $3.19, symbol RE on Toronto (Shares outstanding: 39.4 million; Market cap: $125.6 million; www.rockenergy.ca), produces oil and gas in Western Canada, with a focus on the greater Lloydminster area along the Alberta/Saskatchewan border. Its output is 92% oil and 8% gas. In the three months ended September 30, 2013, the company produced 3,886 barrels of oil equivalent a day, up 73.3% from 2,159 barrels a year earlier. Rock’s cash flow per share jumped to $0.29 from $0.09. The company’s total debt of $3.7 million is just 2.9% of its $125.6-million market cap. That, plus its rising cash flow, gives it the funds to keep drilling and increasing its output. The stock trades at 3.0 times Rock’s forecast 2014 cash flow of $1.08 a share. Rock Energy is okay for aggressive investors to hold. hold…