Monthly review
Most portfolios need balance and that means that along with dividend paying stocks there should be some juniors or "small caps".This review will look at some juniors that I have already done blogs on in the last month or so.The market cap for all stocks is below $1 billion.
All are expected to increase in price in 2014.All have good growth prospects.This blog will attempt to try and pick the best price "gainers" and the best price percentage "gainers".
Connacher Oil and Gas
It is spending about $100 million in development and expansion.Got approval and will increase production on it's heavy oil properties from (present) 12,250 barrels per day to 25,000 barrels.Expect production of 14,500 to 15,000 barrels by the second quarter.It still has controversy over it's conventional oil properties and it's refinery.Expect the price to be around $.25 by the end of the first quarter.
Crocodile Gold
It has two mature mines and one developing mine in Australia.Production has increased in 2013 every quarter.It needs a new acquisition or new mine in 2014.Or it may develop it 's Big Hill project in 2014.The present price is about $.11 per share and should stay in the $.11 to $.15 range without news on a new mine.
Chorus Aviation
Chorus got recent approval of it's benchmark capacity purchase agreement(C.P.A) so there will be no change in the markup or no retroactive payment to Air Canada.They will keep their margins and work on reducing costs.They have a very good maintenance operation and should be able to reduce costs.Chorus has no retroactive payment and so has some money to invest in other facilities.It needs to invest in a regional airline who has a C.P.A with Air Canada such as Georgian Airlines or in a charter business.It trades around $4.00 per share now and may go up to $5.00 or $5.50 with some positive news on an investment.
Interrent REIT
It pays a small dividend of $.20 per share for a yield of about4.5%.Operational revenues have increased by 30% for the last two years and are likely to increase again by 30% this year.It makes acquisitions,does renovations and adds suites to it's properties.It needs an acquisition of an apartment complex or two by the second quarter.So likely it will have a convertible debenture issue this year with a conversion limit of a year or two.Payout ratio is fine but a new debt issue will affect it.May take on some debt so likely will not increase the dividend very much even if earnings do go up.However the stock will likely move up $.75 to $1 with the acquisition of a complex or two.
Perpetual Energy
It is diversifying away from natural gas to heavy oil and natural gas liquids.It is therefore spending money on it's heavy oil assets(Mannville) and natural gas and liquids properties called Edson.It has some gas processing facilities and a small pipeline.This is only connected to properties close to the pipe.It will have increased oil production but must spend more on it's gas processing properties yet.It still has negative net income and that will not change in 2014 but it will improve.So look for a price in the $1.25 to $1.40 range with a slight increase in the price of natural gas.
Oceanagold
It has two mines in New Zealand and a new mine in the Philippines.It developed it's new mine very quickly;it produced 50,000 ounces in 2013 and will produce 100,000 ounces in 2014.Oceanagold bought a mine in El Salvador with high gold and silver resource.Oceanagold will likely develop it quickly.So guidance for 2014 will likely be raised above it's present 285,000 to 325,000 ounces(annually).
Lanesboro R.E.I.T
It was a bigger R.E.I.T but ran into some difficulties.It had a 165 unit apartment building taken back recently.However now it has been returned.Yet it still has mortgage problems because of breaches in covenant.It sold two buildings in 2013 and will need to selloff more in 2014 to reduce total debt.However the property returned in Parsons Landing will bring in more revenue in 2014.But I don't see any catalysts to raise the price above $1.25 to $1.40 in 2014.
Twin Butte
Twin Butte increased it's production from 13,000 barrels to 16,300 barrels(20% increase) in 2013.It also bought another private company called Black Shire.It is expected to sell off some non-core assets.It also drilled 31 wells with a 90% success rate.It now has a concentration of wells around Provost,Alberta as well as in Sakatchewan.It paid $235 million and took on $107 million in new debt for it's new property.It now has increased production of 7000 barrels per day on top of it's own new production.Total production will be around 24,000 barrels per day in 2014.The oil price is sticking around $100 per barrel and net income should vault ahead by the second quarter of 2014.It's new acquisition looks good and we should see Twin Butte in the $2.50 to $3.00 area by the fourth quarter of 2014.
Summary
Connacher Oil and Gas should have the biggest percentage increase.It could increase to almost $.30 with good news on it's refinery although this is cloudy right now.Expect gains of $1.00 per share for Twin Butte,Interrent, and Chorus Aviation.Oceanagold and Perpetual Energy could have gains of $.50 per share.Crocodile is the mystery stock as it could hit $.20 to $.25 but likely will be around $.15 to $.16 next January.Look for Lanesboro R.E.I.T at about $1.25 to $1.40 but maybe still be at $1.10.
All are expected to increase in price in 2014.All have good growth prospects.This blog will attempt to try and pick the best price "gainers" and the best price percentage "gainers".
Connacher Oil and Gas
It is spending about $100 million in development and expansion.Got approval and will increase production on it's heavy oil properties from (present) 12,250 barrels per day to 25,000 barrels.Expect production of 14,500 to 15,000 barrels by the second quarter.It still has controversy over it's conventional oil properties and it's refinery.Expect the price to be around $.25 by the end of the first quarter.
Crocodile Gold
It has two mature mines and one developing mine in Australia.Production has increased in 2013 every quarter.It needs a new acquisition or new mine in 2014.Or it may develop it 's Big Hill project in 2014.The present price is about $.11 per share and should stay in the $.11 to $.15 range without news on a new mine.
Chorus Aviation
Chorus got recent approval of it's benchmark capacity purchase agreement(C.P.A) so there will be no change in the markup or no retroactive payment to Air Canada.They will keep their margins and work on reducing costs.They have a very good maintenance operation and should be able to reduce costs.Chorus has no retroactive payment and so has some money to invest in other facilities.It needs to invest in a regional airline who has a C.P.A with Air Canada such as Georgian Airlines or in a charter business.It trades around $4.00 per share now and may go up to $5.00 or $5.50 with some positive news on an investment.
Interrent REIT
It pays a small dividend of $.20 per share for a yield of about4.5%.Operational revenues have increased by 30% for the last two years and are likely to increase again by 30% this year.It makes acquisitions,does renovations and adds suites to it's properties.It needs an acquisition of an apartment complex or two by the second quarter.So likely it will have a convertible debenture issue this year with a conversion limit of a year or two.Payout ratio is fine but a new debt issue will affect it.May take on some debt so likely will not increase the dividend very much even if earnings do go up.However the stock will likely move up $.75 to $1 with the acquisition of a complex or two.
Perpetual Energy
It is diversifying away from natural gas to heavy oil and natural gas liquids.It is therefore spending money on it's heavy oil assets(Mannville) and natural gas and liquids properties called Edson.It has some gas processing facilities and a small pipeline.This is only connected to properties close to the pipe.It will have increased oil production but must spend more on it's gas processing properties yet.It still has negative net income and that will not change in 2014 but it will improve.So look for a price in the $1.25 to $1.40 range with a slight increase in the price of natural gas.
Oceanagold
It has two mines in New Zealand and a new mine in the Philippines.It developed it's new mine very quickly;it produced 50,000 ounces in 2013 and will produce 100,000 ounces in 2014.Oceanagold bought a mine in El Salvador with high gold and silver resource.Oceanagold will likely develop it quickly.So guidance for 2014 will likely be raised above it's present 285,000 to 325,000 ounces(annually).
Lanesboro R.E.I.T
It was a bigger R.E.I.T but ran into some difficulties.It had a 165 unit apartment building taken back recently.However now it has been returned.Yet it still has mortgage problems because of breaches in covenant.It sold two buildings in 2013 and will need to selloff more in 2014 to reduce total debt.However the property returned in Parsons Landing will bring in more revenue in 2014.But I don't see any catalysts to raise the price above $1.25 to $1.40 in 2014.
Twin Butte
Twin Butte increased it's production from 13,000 barrels to 16,300 barrels(20% increase) in 2013.It also bought another private company called Black Shire.It is expected to sell off some non-core assets.It also drilled 31 wells with a 90% success rate.It now has a concentration of wells around Provost,Alberta as well as in Sakatchewan.It paid $235 million and took on $107 million in new debt for it's new property.It now has increased production of 7000 barrels per day on top of it's own new production.Total production will be around 24,000 barrels per day in 2014.The oil price is sticking around $100 per barrel and net income should vault ahead by the second quarter of 2014.It's new acquisition looks good and we should see Twin Butte in the $2.50 to $3.00 area by the fourth quarter of 2014.
Summary
Connacher Oil and Gas should have the biggest percentage increase.It could increase to almost $.30 with good news on it's refinery although this is cloudy right now.Expect gains of $1.00 per share for Twin Butte,Interrent, and Chorus Aviation.Oceanagold and Perpetual Energy could have gains of $.50 per share.Crocodile is the mystery stock as it could hit $.20 to $.25 but likely will be around $.15 to $.16 next January.Look for Lanesboro R.E.I.T at about $1.25 to $1.40 but maybe still be at $1.10.
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