From the "Stockwatch Late Edition"
Edmonton Canaccord broker, David Pescod, writes a great daily newsletter called the "Stockwatch Late Edition". I liked it even before he started including my ideas in it. If you want a subscription to it contact Debbie.
We notice today that Letourneau’s pick in the coal bed methane sector, Richards Oil and Gas (RIX) has just hit a double, and I’m sure those who have noticed us writing up Wavefront Energy (WEE) frequently, has also recently doubled and actually better than that for Letourneau as well.
So we ask him, “what do you like today”? He responds: “Service companies in the oil and gas and I just love silver” he answers. He must, as he suggests he is currently picking up call options on some of the big American silver producers.
As far as the oil and gas patch, he figures we are in a broad trading range for the next six months of anywhere between $50 and $70 and noting the big correction in many oil and gas and service sector stocks, he’s right back to a junior service stock that has helped make his reputation this past year. He had picked Leader Energy Services back in January when it was a mere $1.40 and suggests “these days in the oil and gas business, if you’re an oil and gas producer (be it a junior, a mid-tier or whatever) you’ve made your projections and you have to live up to them. If that means paying the high prices for service company’s work these days, you don’t have much of a choice but to do so”.
Letourneau suggests Leader Energy should be growing quite a bit and he simply suggests you’ve got a chance now to pay $3.50 for the stock, which should look better than paying $4.50 down the road. As we mentioned in the past, Letourneau wouldn’t be surprised to see Leader in double-digits in the next 18 to 24 months. It remains his top pick in that sector.
He is absolutely in love with silver and for those who aren’t into some of the very high risk strategies, his top pick there is Endeavour Silver, Brad Cooke’s silver company centered in the Durango area of Mexico where they hope to see a camp develop and see their silver production soar over the next two years.