CUE-> Pantheon of small oil stocks
CUE energy- NEW Shrewd crude pick....
This time I want to be alot more professional about my pick and I willnot be raging bull all the time, I hope to have a balanced view of this pick that will return 100% minimum over a one year play...
before I start talking about the company I want to take the time to discuss
1....what type of investment this is,
2....talk about some of the risks,
3....and tell you where im positioned in CUE...
1.... This is the type of investment suited to a person with an investment term of around one year plus a few months if need be... this is not a short term investment where multi baggers will be made in weeks/ months, but the upside is big over a period and upside is present in the short term and medium term.... this is not the type of investment with a long term view... it is the type of investment following a few key projects into production including Maari-(NZ offshore), Oyong oil, and Oyong and wortel gas tie into Oyong oil facilitys late next year if you are prepared to hold through... I will discuss these projects at a later stage...(it is a pure spec oiler nearing production) and fits all the criteria I have of spec oilers nearing production...
so investment term is 1 year plus possibly a few months...
2....CUE energy is favourable in terms of risk return...
The biggest risk CUE has is market risk... if markets are stable this will return well... if markets volatile, then this maynot be the best pick suited for your risk profile...
It is up the the individual to understand market risk, and dont blame me if markets turn this share soft... blame me in alittle over one year if this stock turns soft and markets are up...
it is similar to other stocks I have held with low downside and big up... downside risks are alittle higher than my previous picks... and are due to project delays and Exploration/ projects being in Indonesia/ and Sampang PSC which is risky in itself... Oyong is a project that has been delayed multiple times similar to that of Pike, Santos is running the project and Production is expected late this quarter...
Jeruk has been unsuccessful in exploiting its large potential and currently holds little value for the company, but does hold oil reserves around 50million barrels..
This type of investment is not based on luck through exploration success... it is about investing in projects that will re-rate similar to what Tui has done to NZO as projects sure up and become more certain as they come closer to coming online... Maari production is massive for the growth of this company... but is abit more risk as Oil needs to be heated up for extraction to occur rather than natural flow rates, Production will need to be stopped at times to heat the oil up...
The todds are one of the richest and familys in NZ, they currently own 25% of CUE...
management is capable, but sometimes doesnot disclose like some would hope...
current disclosure is about par within this industry
3....At the moment I am not currently in CUE, I am not in because I will have to sell a position of another holding, and I will sell NZOOD once Tui production comes online and hector gets closer...
I think SP could be strong soon and I dont want others to miss out because im not in and because of that not pushing CUE... I look to return more in nzood in the short term before transferring into CUE for a 1 plus a bit play, and make 100% minimum... CUE has been strong lately and On friday sp was stable in a falling market... SP has risen off 12-13cent lows this year and its still an undervalued play...
As I have said before, SP cannot be determined in weeks months or even a year or two....
One thing I can say is that the path of the Share price looks up and up to me...
upside is bigger than 100%, 100% is a bench mark
[8D]
.^sc
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