Question for Selkirk

[ssd]

Selkirk:
I value your opinion in this forum and was wondering what your position would be on PKN. It is a Canadian firm with its oil fields in Kazhakztan. From what I have read, the oil fields are reportedly to contain similar if not larger amounts than the Iraqi fields. They are currently pumping 135,000 brl per day.

Thanks in advance,

ssd

 

[selkirk]

ssd thanks for the kind words, PKN has been a stock I have noticed about 18 months ago. The stock has gotten a lot of news coverage and many articles have been written about the company in the cdn. national papers (globe and mail/ROB, and National post). along with Television coverage.

The stock has great management and at the current oil prices is a cash machine, saying that the reason I never purchased the stock (mistake since was trading below $8cdn. now at $28.74 Cdn. $20.99 US) was Kazahstan where their operations are located.

could tell you horror stories of companies that have done business in Russia, however this stock though it has had some problems have increased oil production and cash flow /profits.

Valuation if you put PKN (property was locataed) in cdn. or the US you would pay double for the company if not more. so the location is discounted in the stock.

Oil is slipping from $30 and may test $25 you may want to see if the stock will fall along with the price of oil, get it a little cheaper. If you are comfrotable with the risk (Kazakhstan / which is run better than some soviet states) then it is a cheap oil stock to buy.

would keep it a small percentage of your portfolio mainly due to political risk. otherwise a good cheap stock...........which sadly do not own. may get it cheaper it oil drops further.

thanks
selkirk