AN INTERVIEW WITH ANDY GUSTAJTIS,
ANALYST WITH DOMINICK AND DOMINICK
(As of November 28, 2007)
D.P: There is an interesting play in South America after
what you have mention about Latin America – Petrolifera
Petroleum, which has had a little bit of problems in Argentina,
but for anyone who has seen the seismic on their
projects in Peru gets excited.
A.G: With Peru's Camisea Gas Project, Peru is now on
the radar screen as a country that has the potential for
elephant discoveries.
There is a pipeline into the Pacific Coast; there are moves now underway to bring this gas by
LNG into North America.
I think Petrolifera has a very competent, technical team running the Company.
They have been very successful in Argentina, they hand-picked
the two licenses they got in Peru. They obtained those
licenses before the global oil industry woke up to the opportunities
in Peru. The early seismic is confirming they
have a huge opportunity which will take time but I am not
long the stock for a short term flip.
With success Petrolifera could be a multi-billion Company.
These type opportunities are extremely hard to land.
A.G: Being a little bit of a gambler, I would basically think that Pacific Energy (if they could get this refinancing accomplished and out of the way) could prove to be quite an exciting story. I would put them as my number one favorite. I’m hopeful that we are going to see some new contracts being announced from Sustainable Energy in the next few weeks,
if not months and if that happens, I think the stocks could get some momentum and move to new highs. And I still think that Connacher is so unbelievably undervalued in relationship to what it offers, that I would have to put Connacher as a strong buy here.
Andy Gustajtis is an Officer and Managing Director of D&D Securities Company which is a member of the IDA and the Canadian Investor Protection Fund. His comments are believed to be reliable but we cannot represent that the information is accurate or complete and it should not be relied on as such. D&D Securities Company, its officers, directors or employees from time to time may hold shares, options or warrants on any issue included in this interview. D&D Securities Company has actively participated in financing of ARISE Technologies, Corridor Resources, Connacher Oil & Gas, Sustainable Energy and Pacific Energy. Comments made should not be construed as an offer or solicitation to buy or sell and securities.
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Monday, December 3, 2007
AN INTERVIEW WITH ANDY GUSTAJTIS + Pescod
Jim Cramers Stock Tips + 2008 Zinc news
 MSNBC.com |
NEW YORK - Oil prices fell in volatile trading Monday as investors placed bets on whether OPEC oil ministers will increase production during a meeting later this week.
At the pump, meanwhile, gas prices fell 2.7 cents overnight to a national average of $3.061 a gallon, according to AAA and the Oil Price Information Service. Analysts expect gas prices to continue sliding in the weeks to come, as long as oil prices continue to fall.
Crude futures have dropped about $11 in one week on the belief that the Organization of Petroleum Exporting Countries have all but decided to boost production. But the price drop itself has raised questions about whether OPEC ministers will follow through during the Wednesday meeting in Abu Dhabi.
Recent OPEC comments about production increases have been divided, with ministers from Venezuela and Qatar suggesting there’s no need to boost supplies, while ministers from Indonesia, Nigeria and Kuwait say they’re still open to increases. Saudi Oil Minister Ali Naimi, possibly the most influential member of the cartel, has struck a neutral tone, telling reporters this weekend that “the field is wide open.”
“The rhetoric over the weekend has not made the picture any clearer as to which way the cartel will go,” said Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Light, sweet crude for January delivery fell $1.17 to $87.54 a barrel on the New York Mercantile Exchange, but rose at times to near break-even.
Concerns about the economy were also weighing on prices. Several economic reports over the past week have suggested that growth is slowing, and the Institute for Supply Management, a Tempe, Ariz.-based trade group, on Monday reported that growth in the manufacturing sector slowed in November.
“There’s sort of a growing feeling that we’re going to see demand ... being so weak that this is going to pull prices down,” said Michael Lynch, president of Strategic Energy & Economic Research Inc. in Amherst, Mass.
Lynch thinks OPEC will hold production levels steady, arguing that last week’s price declines have largely accomplished the cartel’s goals. OPEC is also worried that an oversupplied oil market would drive prices dramatically lower, Lynch said.
Other analysts are divided in their views, but a consensus appears to be forming that OPEC will increase production if prices remain above $80 a barrel.
Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill., notes that what OPEC says and what it does are not necessarily one and the same thing. The cartel could easily announce a production increase to keep prices on their downward tack, but then decline to boost supplies if prices remain low in the coming months.
“OPEC could easily fall short of any agreed upon production increase,” Ritterbusch said in a research note. “OPEC’s main goal out of this meeting will be to apply some bearish psychological pressures to a market that some key cartel members feel has been taken out of their control.”
Other energy futures also fell Monday. Gasoline for January delivery fell 2.16 cents to $2.209 a gallon on the Nymex, while January heating oil fell 4 cents to $2.475 a gallon.
January natural gas futures fell 11.7 cents to $7.185 per 1,000 cubic feet on the Nymex.
In London, January Brent crude dropped 76 cents to $87.50 a barrel on the ICE Futures exchange.
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