Quite sometime ago, I suggested that people do due diligence on a tiny oil and gas company with a play, that I labeled as a "Mini Bakken". Now a major Canadian analyst named Danny Deadlock, has done a thorough research report. Danny is not a wanna be, HE IS, THE MAN!
Personally have this stock marked for any major disruption of the oil markets in the Middle East. I think that we can count on that happening. Strata X, Illinois Basin play is strategically located for transport to refineries. I believe that not only where they the first but they yet retain the ONLY LICENSE TO FRAC in the big blue state of Illinois.
Tell me what you think after you review this report. Also, what's your intermediate term bet. Should the basin prove to be a world class oil and gas play. Will the state of Illinois, hand out more frocking licenses, or will Strata X be taken out for a large premium?
Danny's faithful and loyal are probably in the shares by now. The company will need to do a couple of small private placements. It already has a large float. Study, wait and accumulate. I would not rush to buy these shares unless the underlying commodity appeared ready to move north. Do know that the value of the companies leases are a compelling reason for long term investors to accumulate and hold. When it does move north, realize that many investors on the TSXV flip stocks like hotcakes.
Further, I would recommend that the company do a reverse stock split. This will help the qualify for better valuation on more noble bourses. ER http://www.scribd.com/doc/272493691/Strata-X-Energy-TSX-V-SXE-Analyst-Coverage-07-24-15
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am a pure swing trader on this commodity sensitive stock. I may buy or sell at anytime.