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Point Loma highlighted among growth stocks to watch in 2017 by Mackie

Thursday, January 12, 2017 5:25
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(Before It's News)

Alberta-focused oiler Point Loma Resources Resources Ltd (CVE:PLX) was highlighted among stocks to watch in 2017, by broker Mackie.

Analyst Bill Newman has looked at growth stocks which he sees as under-leveraged and undervalued.

Point Loma issued a trading update on Friday, in which it revealed another step-up in output and said the increase in oil and natural gas prices would have a positive impact on its 2017 cashflow.

“With our expectations for an improved commodity and investment climate, we highlight two domestic companies (Point Loma Resources and Prairie Provident Resources), and two international oil and gas companies (Condor Petroleum and TAG Oil) that have similar strengths that should allow each to prosper in 2017,” said Newman.

These four companies have strong balance sheets to weather weaker commodities prices and take advantage of acquisition opportunities, he said.

They also have strong production growth potential and low cost structures which could amplify returns in a rising commodity prices environment.

Thirdly, they  are highly undervalued with the potential for significant returns upon achieving milestones, said the analyst.

He notes that oil prices last year were highly volatile but closed near to a yearly high with the OPEC production cut agreement reached at the end of November.

“We expect oil prices to trend higher in 2017 as the market moves closure to balance,” he added.

Producer Prairie Provident Resources (TSE: PPR) says its assets consist of attractively priced light and medium oil with associated natural gas.

The focus is the Wheatland and Princess properties in Southern Alberta and its Evi area  in the Peace River Arch area of Northern Alberta.

Meanwhile, Point Loma was producing around 620 boe/d (barrels of oil equivalent per day) at year end, consisting of around 55% oil and natural gas liquids.

Story by ProactiveInvestors

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