You’re only as good as your last deal.
Buy the jockey, not the horse.
That’s what came to mind today when I read that Eagle Rock Explorations (ERX-TSXv) was bringing in a new management and re-capitalizing this 550 boe producer operating in Alberta and Saskatchewan. Half the new group is from Crescent Point Energy (CPG-TSX) the most highly valued intermediate oil producer on the TSX. That’s a great calling card. The other half comes from Wild River and Prairie Schooner, two junior producers that were build and sold earlier this decade.
And the Eagle Rock stock showed the worth of this team, quadrupling to 32 cents on huge volume of 12 million shares – 22% of the stock outstanding. Many investors follow this strategy, find successful management teams who have built and sold companies before, and follow them on every deal. So in my next issue for subscribers, due out in the first couple weeks of October, I will profile three new young companies that are the new ventures for three highly successful management teams in the Canadian oil patch.....Read the entire article
