A Traders look at Enterprise Oilfields

posted on Jul 21, 09 01:02PM

I’ve been trying to write my inaugural post for some time that encompasses why 'E" has been given the tap on the shoulder with roys golden sword. It’s more than just the financials and all the nice write-ups that CFAs are paid to do by the companies they work for that have already bought a position. These reports I will be posting over time.

The fact that Sprott has taken a maximum allowed position is a key factor that helped sway me. I have followed Sprott for a long time and have utmost respect for their creative and insightful decisions. It was Sprott that led the charge on Questerre that royrogers backed at 42c before its mercurial rise to $6.40 and analysts glowing reports calling for $20 plus. They seem to have a grasp which eludes the mid size players for penny plays.

Being an ex VSE head trader for many years I tend to generally look at a deal with a different perspective than a CFA or financials analyst. "They" say all over that it’s worth 65c/share.....funny, the market says its not and the trading range is near 17c for quite some time with dribbling volume. Time will tell...the proof, is, in the pudding.....and quite a Nestles mix this one. All the tools are there. The architecture of the deal is the only thing left unresolved.

The architects of Enterprise Oilfields are Leonard Jaroszuk and Desmond O'Kell [Len and Des). Enquiring about in Vancouver and Calgary financial circles gets you nothing but positive feedback. Fair, honest, trustworthy and not greedy are common adjectives that are often heard.. I look at the building of this company from nothing to 40Million in sales. Magical, creative and done with class so smooth the transactions are like glass. They truly are niche specialists at the top of their game. This is the most exciting part of the possibilities of this mid sized maverick company.

They understand the art of the market as well. "E" was born from a junior capital pool and has achieved following of hedge fund managers and analysts in a short time as well as a prestigious TSX full big board listing.

Word is they are now seeking a corporate backer and have hired their first of two promotional tie consultants to help move the market back to its rightful spot....maybe the 40-45c range?

RSR Holdings is wholly owned by penny specialist R.S.Roney. Mr. Roneys resume includes stints with CEC [20c to $1.60) and CAA (40c to $3) which he stuck with until successful. A similar performance here would make all shareholders quite happy. At any rate it shows the shrewd and timely management of Len and Des

I understand there is another acquisition in the works as well. but still in the planning stage.

On the chart side, the stock shows triple bottom at the 17c range with nothing but blue sky from the 25c break out point to the next resistance level of 40c. Look for volume in the 18-25 range as a signal

Add it all up and make your own conclusions.

Even in a bad market for pennies like this, the cream will rise to the top

Watch your butt out there investors and good luck

royrogers