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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Re: can comparrison be made?

Oct 22, 2009 07:37PM
1
Oct 23, 2009 12:22AM

Re: can comparrison be made?

posted on Oct 23, 2009 01:01AM

2C,

Good DD on Harvest.

I use to own this one. Sold it after they bought the refinery which moved the Harvest from fast growing energy explorer and producer to "slow turtle".

Refining is a very low margin business. Just look on Spiderman`s CLL Q3 /Q4 estimates and you can see how irrelevant the MRC cash flow is in comparison to bitumen sales.

On the Harvest sale subject:

Korean National Oil Corporation (KNOC) paid $10 for the $13.34 of Harvest net asset value per share.

CLL NAVPS is about $1.75. Recent dilution had a negative effect on CLL assets and is ignored by those who see the CLL SP exploding to $10.

The equivalent offer for CLL would be $1.25.

It won`t happen. Remember, we have the "poison pill" in place.

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