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Legendary newsletter touts oil sands play
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Wednesday, October 07, 2009
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By Daily Crux Editor Justin Brill:

If you're interested in speculating in the oil sands sector, Jim Grant has a great suggestion for you.

In his lastest issue of Grant's Interest Rate Observer, he points to small-cap UTS Energy as a top prospect. Grant thinks the company is worth far more than its current share price of $1.77, and backs it up with some interesting facts.

The company's $250 million in cash and $700 million "earn-in" totals more than its current market cap, and its shareholders rejected a buyout in April that valued the company at $1.75 per share, at a time when oil was just $50 per barrel. The company also has proven reserves in the ground that, if priced similarly to other recent deals, value it at $4.88 per share, or 280% higher than its current share price.

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Topics: Energy | Commodities | Stocks
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