bowman711

Hidden Risk for Canadian Oil Sands: Environmentalism

Although the so-called environmentalist would have you think otherwise - that the oil sands companies just pillage the land and go on - the major oil sands companies are taking the environment quite seriously and spending significantly to restore the land once they move on.

None of the major 'environmental' organizations - with the exception of The Nature Conservancy - are interested at all in the environment anyway; all they want is the destruction of capitalist economies.

Oil: A Slippery Slope Ahead?

One other thought: the author gives Oilsands Quest (BQI) as a (bad) example in his article. Has BQI dropped so much in price due to economics or drop in oil demand, or because it is a favorite of the well-researched hedge and mutual funds that were forced to liquidate anything they could to meet their cash requirements?

Oil: A Slippery Slope Ahead?

The monthly oil chart at futures.tradingcharts.... shows the huge drop in the price of oil. A drop due to loss of demand for oil - or due to the forced liquidation of all holdings by hedge and mutual funds? I side with a drop due to forced selling to cover leveraged positions or meet fund redemption demands.

At some point, this financial crisis will pass. What do you think will happen to the price of oil stocks when these funds start investing in them again? I'll bet 10,000 shares of BQI that when they do, oil will find its level approximately at the level it was in the middle of 2006 (see chart) and continue up at about the same rate it did until mid 2006.

Keep Buying Big Brown - Cramer's Lightning Round (9/4/08)

I hope he isn't crazy - I have 10,000 shares of BQI . . . patiently waiting for some big oil company or Chinese company to buy it out. On June 26th, BQI put out an updated resource estimate of 6.6 billion barrels of oil. At $100/barrel that would be over $600 billion. Even at 75% production cost, it still leave a company value of over $150 billion. Divided by its current 228.71million shares, let's see, that is over $655 per share. I think it will be worth the wait!

Something's Brewing at Oilsands Quest Inc.

Apparently some of the above commenters are unaware that BQI is in the process of being listed on the TSE. It is already on the American Stock Exchange, and was also included in the Russell 2,000 maybe a year or so back.

Also, a couple of months ago, two institutions made huge purchases of new issues of stock. If I recall right it was at $4.20/share One was $4.5-million dollars and the other was for $50-million! So, about two months ago, some institution gave a $50-million vote of confidence in the stock. Does anybody think any institutional investor would be stupid enough to put that kind of money into a loser?

Oilsands Quest: What's in a Name?

The links didn't come through above, so here they are:
seekingalpha.com/artic...

seekingalpha.com/artic...

Oilsands Quest: What's in a Name?

The value of BQI will be realized when one of the super-big oil companies buys it to add to their oil reserves. Read these articles mentioned in this quote:

'Valuation

So what is BQI worth? For that, I turned to two Seeking Alpha articles, "Oilsands Quest Inc.: Undervalued Canadian Oilsands Play" and "Three More Compelling Reasons To Like Oilsands Quest". Taking the average of the two target prices in those articles ($18 and $26 per share), I arrive at a valuation of $22 per share, or over 400% higher than the current price of $4.32 per share.

Following the Norwest estimate catalyst, I believe that, BQI's stock will move upwards towards $22 per share as investors speculate on the potential economics of a joint venture with a big oil company. Helping the stock get to $22 per share will be all or some of the catalysts listed above."