Return of the J.E.D.I.

Disclaimer: This is not investment advice, nor is it a recommendation to buy or sell shares in the company/companies mentioned.

Read Full Disclaimer

The information contained herein is accurate to the best of the author’s knowledge, but the material and interpretations contained herein should be independently verified by any party using this information as part of any research, editorial, or decision making process. Any views expressed here represent the author’s opinion only, and as such readers should do their own research and come to their own conclusions if they are using the opinions contained herein as part of any larger due diligence process. The author may have long or short positions in the companies mentioned and may be buying or selling in the market depending on which way the wind is blowing at any given moment. Opinions are subject to change without notice. Prospective resources, predictions, comparisons, financial projections, and extrapolated metrics are, by their nature, subjective and interpretation dependent. The topics covered are highly speculative and involve a high degree of uncertainty and risk. Speculative companies can and do go to zero. By using this site, you agree that the author(s) and Hydra Capital is/are not responsible for any damages incurred by the use of the presented materials. Anyone reading these blog posts should know that they are the author’s thoughts and opinions, which are not to be confused with or construed as research reports.

Disclosure: The following represents my opinions only. I am long TAO.V, TNZ.TO, and VLE.TO (Image credit to Pawel Nolbert on Unsplash)

Long ago, in a far away galaxy, investors once cared about junior international energy stocks. There was a diverse ecosystem of analysts and institutions investing in international energy stories as the world demanded more oil in response to the massive growth in Asia, particularly China. There was a whole sub-sector of international Canadian-based independent champions in just about every major oil producing region you can think of, and the shares were widely owned and traded by institutions and retail investors alike. Financings were announced and oversubscribed, capital was deployed, risks were taken. Fortunes were made and lost, and through all of it, more oil and gas did make it to market as a result. After the 2008 implosion, gradually, the light faded; and eventually only a shadow of the sector and its investors remained. Now, fifteen years after the GFC, I’m feeling like 2023 could see the return of the J.E.D.I. — the Juniors who Explore and Develop Internationally — in terms of small cap market interest. In Q4 alone, I have seen Jedi-like deals for three of my junior hopefuls — Tag Oil (TAO.V, last at $0.55), Valerua Energy (VLE.TO, last at $1.70), and now, Tenaz Energy (TNZ.TO, last at $2.00). I think that all three of these companies have the ability to inspire hope in a sector that has been lost for years… and they all will begin their journeys in earnest in the New Year.

Create A Free Account to Continue Reading

×
Select Payment Gateway