Lundin says hold Bankers Petroleum
2009-03-02 20:45 EST - In the News
Brien Lundin, in the February, 2009, edition of the Gold Newsletter, says hold Bankers Petroleum Ltd., recently 90 cents. Mr. Lundin said buy Bankers in October, 2005, at 56 cents, and in March, 2005, at $1.30. He then said sell -- half, perhaps -- in April, 2005, at $1.80.
Assuming a $1,000 investment for each of the two buys, selling half of the total $2,000 investment would have yielded a profit of $1,241. He said buy again four times between August, 2005, and June, 2008, at prices ranging from 52 cents to $2.14.
(The stock consolidated 1:3 on July 30, 2008.) Assuming a $1,000 investment for each postsale buy, and considering the remaining $1,000 investment after the previous half sale, the total $5,000 investment is now worth $1,635.
Despite a "cratering" market for oil, the company's exit production rate in 2008 was 31 per cent better than its exit rate in 2007 at its Albanian Patos Marinza oil field. The oil field averaged 6,563 barrels of oil per day in the fourth quarter of 2008 compared with 5,880 barrels of oil per day in its third quarter of 2008.
Mr. Lundin says that although oil is not currently trading well, his guess is the oil market will make a substantial recovery sooner than later.
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