Every speculator knows smallcap stocks can go from sleepy to leading performers in an instant… That’s kind of what happened to member ‘Pineros‘s selection of Valeura Energy (VLE: TSX) in December.
Pineros’ stock-picking ability will never be overlooked again…
Consider this: on December 2nd, just a few days into the month’s Stock Challenge, Valeura Energy was a little-known energy deal and traded a measly 3,000 shares between $0.65 and $0.62, worth $1,920. Only 4 trades were recorded that day…
However, on December 6th, the company recorded 1,592 trades on $3,894,933 worth of stock traded! Moreover, its shares soared 123% on the day and continued to add value throughout the month. When it was over, Valeura registered a 226% monthly return. You have to love small caps. So, here is what happened…
Calgary-based Valeura Steps into Thailand
On December 6th, the Calgary-based company released a news release titled, “Valeura Energy Inc. Announces Transformative Gulf of Thailand Acquisition.” Here is an excerpt from the press release:
“This Acquisition consists of operated interests in three offshore licenses in the Gulf of Thailand that include the Nong Yao, Jasmine/Ban Yen, and Manora oil fields, which collectively currently produce approximately 21,200 bbls/d of oil, net to the interest being acquired. The purchase consideration for the Acquisition is US$10.4 million plus up to an additional US$50 million, contingent upon certain upside price scenarios.”
21,200 bbls/d is nothing to shake a stick at, but the cash costs are perhaps the real story.
The company continued:
“Weighted average cash operating costs across the assets of approximately US$22/bbl, comprised primarily of fixed costs associated with offshore facilities;
Immediate pre-tax cash flows of approximately US$30 million per month;
Total proved plus probable (2P) reserves of approximately 24.1 mmbbls oil.”
Click here to read the entire press release.
Valeura Energy – 1 Month Chart
As the only member who selected Valeura in December, there was simply no catching Pineros.
But long-time member and perrenial contender ‘Joey Walmsley‘ did try. In the final two days, his selection of Logiq Inc. caught fire, soaring 18% Thursday and 77% Friday! He almost caught Pineros, finishing the month in triple digits with a combined average return of 102.07%; stunning come-from-behind performance, Joey! We know better than to count you out, but that was a remarkable finish. Congratulations on the second-place prize package.
The Stock Challenge Index (SCI)
Rounding out the Top 3 is ‘Philip Yao‘ – our mid-month leader. Philip is finding out just how hard it is to win Pinnacle’s Stock Challenge. Even with a timely SWAP that saw him drop Canopy Growth (-21.55% on the month) for BeyondSpring (up 63.48% post SWAP), it still wasn’t enough. Even in a tough market that saw all indices drop in December, Philip’s 91.17% combined average return wasn’t enough for the silver or the glory…
Honorable mention goes to member ‘Lubie1953’, our fifth-place finisher who selected Ra Medical Systems Inc. (RMED) – up a whopping 140.41% on the month. Philip Yao also chose Ra Medical.
2023 is upon us and we want to say a special thank you to everyone who participated in the many Stock Challenges of 2022! There is plenty more silver up for grabs in 2023! Good luck!!
Have a happy and safe New Year’s Eve! Here’s to a fulfilling and prosperous 2023…