OJO Zafado

Something is Brewing at Oilsands Quest (Beyond Cramer's Endorsement)

Oil recovered from oil sands still needs to be blended with regular crude before refining. The US gets 15% of it's nat gas from Canada. I continue to be amazed by bloggers and investors who reason that if a resource is in Canada it is the same as having it in a 51st state. Canada has recently had a 14% increase in it's currency against the US$ by pursuing a much sounder economic policy than the US. Here in the US we assume that tax cutting and massively increasing government spending is some kind of a solution. Next we will have the Democrats who are perceived as Tax and spenders. The Canadians have no powerful Senators from Podunct. They have a fully representative parlimentarian gov't. They have been dramatically increasing taxes on every plane for the last several years, and especially on Energy. They tax then spend. A near crisis was recently averted when it became a very real possibility that there might be a call for elections based on the "Tory" government revealing that the current accounts SURPLUS had shrunk to $C one Billion . Canada is not Venezuela or Russia, but do not think their resources are going to be cheap easy pickin's for the lower 48. As things stand now Canada will be increasing it's domestic consumption of nat gas to it's own economy, while at the same time huge amounts are diverted to Oil Sands projects. This is why Cranmer's prediction of $16 MM~BTU is spot on. It seems the technology for extracting oil from oil sands is continuously improving. Still it is very energy intensive in terms of what goes into the net end product. Currently it seems that less than 60% of the oil in a cubic Meter of oil sand can actually be extracted. The rest remains in the waste residue. The SAGD recovery process while dramaticaly reducing residue seems the most inefficient. BQI has had a great couple of months on the charts. They do indeed lack resources. The whole Canadian oil sands industry is still behind the curve in terms of ameliorating environmental degradation. The whole MacKenzie river basin is at risk environmentally. The charts just don't show that this stock was previously at near $8, 2 years ago before the name changed. So now I will just have to increase my next sell limit order to unload the shares I purchased near $7? After two years it is good to finally be out of the red and into the black. A double from here would not be that suprising.
Last Oct GACHF was a $1.35/share stock. Listening to Cramer you would have been out of that position at $3-$4. Now it is +/-$10? The pigs finally had their day and got a Presidential pardon? Too often a Cramer endorsement is just a kiss of death! Cendant, Montpelier Re and some paint manufacturer with lead paint exposure are just a few of his bombs.

Oilsands Quest: What's in a Name?

I am in the same boat as Resource man. I continue to take off partial positions above $6 and buy partials at +/-$4. This $22 valuation was floated out by a Louis Navallier news letter as teaser bait, more than two years ago while never actually naming the former Can West Petroleum that has now morphed into BQI. This seems like a good stock to put in your teenager's IRA. Development is years away. However, Can Pac railway has announced that they are expanding track into the oil sands regions to provide freight in and syn crude out in tanker cars. Still a long way to go for BQI shareholders. There is even the issue of Canada continuing to raise taxes on energy as Brasil and Russia have just announced once again. There are going to be plenty of cycles in this stock over the next few years as it will continue to trade as a "channelingstocks.com " favorite. Good luck to all longs!