Ivanhoe Energy: Risk/Return Doesn’t Get Much Better

For having figured out how to dramatically alter the energy equation of bringing Bitumen (Oil Sand) to market in a cost effective and very ingenious manner that is patent protected, environmentally friendly, and has been tested by all the major producers with investment in Oil Sands, the market seems to not have noticed Ivanhoe Energy (IVAN). The stock has been under accumulation for a couple years now, but it is still news dependent.

Nevertheless, she’s making me wonder what the runaway breakout price for crude is before oil-sands begin to look like an acceptable solution to America’s energy needs? If we see crude get through $125, people will certainly begin to notice. Plus, the longer crude prices stay up in triple digits, the long term rolling averages used to price baskets of crude will begin to rise as well.

This certainly has a trickle down effect in many areas. Right now, energy stocks appear to be where tech stocks were in 1997: just about to enter their 2 year climax.

Comments

[whidbey:]

I think you are correct, price is critical to buying into the sands. I have been in the Canadian trusts and even they have trouble keeping the interest of the computers on Wall Street. Ivan may be a while and above 125 dollars. Still I hold a little just in case.

2008 Apr 14 02:53 PM

[gabe borens...:]

In addition Ivanhoe hast tested a system for conversion of the heavy crude into a light crude.As many refineries can not "crack" heavy crude ,Ivan's technology will be very important and evolutionary in the energy market segment.Furthermore as a Canadian company with an erxposure in China ,Ivan appears to be a great addition to a portfolio for investors looking for non U.S market exposure.All said and done,the stock has been trading in the lower part of its range.Evidently some major shorts exist.

2008 Apr 15 06:20 AM

[Steven Ward:]

As a follower of Canadian oil stocks, most of which are not traded on the US exchanges, I have long noticed that the average American investor is completely unknowing of these issues.

Ask the average American what oil stocks are in his/herportfolio you get the same response, Exxon, Chevron, etc. Sometimes a big Canroy like Penn West trading on the NYSE or an Encana on the NYSE and that is about it. The only units that attracted US investors on the TSX were and still are the Canroy's.

I hold Ivanhoe along with Pearl and Opti of Canada.
They have very good to excellent assets and prospects. And if they sought a dual listing on one of the US exchanges the price would jump, heavy oil not withstanding. More time I guess is needed for investors to see value in these issues.

2008 Apr 15 01:11 PM

[Yael Pipano:]

WHAT ABOUT THE FACT THAT ROBERT FRIEDLANDER IS A RIP OFF ARTIST (THE HEAD OF IVANHOE)? DID YOU READ THE BIG SCORE?

2008 Apr 15 08:31 PM

[hereisbasso:]

Excellent article. Ivanhoe is a company you will be hearing a lot more about in the future. Get in while you can.

Their website is ivanhoeenergy.com

2008 Apr 15 08:38 PM

[gofomodo:]

Sorry to be a wet blanket, but where did that magic figure of $125/bbl come from, where oil sands become economical? Are you sure it isn't $140? or maybe $150?

Exactly the same sorts of things were written about Ivanhoe two years ago, and four years ago, and.... This company has always been about "exciting potential" -- and sometimes pure hype -- and never about results. The multi-year stock chart is a sad picture of successive generations of "visionary" investors getting their hopes crushed.

No doubt, someday their process will produce actual profits, if you really want to hold the stock for however many years that takes.

2008 Apr 17 03:44 PM

[pcat:]

Robert Friedland sold that plat.mine and made himself a billionaire so their are lots of people who hate successful people.The mine is making billions now as plat.has never been higher.How about climbing back in your government supplied hole swim unless you really have some facts that can be backed up by facts,huh?

2008 Apr 17 04:00 PM