Nov.28
Novus Energy
NVS $1.08 up 1 cent on 15 Million shares
With the price of oil going down over the last while and costs in the business increasing rather dramatically, $85.00 oil is certainly not creating the joy in the oil patch of six and 12 months ago. And of course with all the talk of the fiscal cliff, it’s scary looking at the charts of all the oil and gas companies out there. There are very few of them trading at or near their high for the year and many are trading at significant discounts to where they might have been.
Novus Energy is one of the very few trading at lofty levels and on big volume and as we wrote , we know that discussions are ongoing about what next for the company.
Yesterday, Andrew McCreath on BNN talked about it as well. Andrew over the last while has picked up an audience for some of his insightful suggestions. We believe “Bridgediver” on Stockhouse got it right in transcribing what McCreath said about Novus when he suggested, “but what is really interesting about this acquisition (of private production and land, by Raging River) is that they are buying all the land around a company called Novus, NVS, which is a company that I believe a group, 3 different companies are interested in buying and I would expect a transaction to occur early in Q1 of next year for that company (Novus).
Anyway, it looks like a good tuck-in acquisition for this company (Raging River).”
Our own thoughts in this ugly market is that Novus could end up with three situations…they could be bought out (which isn’t happening a lot these days); they could be merged with somebody such as a Raging River (which lately hasn’t worked out for companies like Pinecrest Energy and a long list of others); or nothing could happen (which we suspect could drop the price back to where it was a few weeks ago). So which one of the three scenarios will happen?…….
Related articles
- Novus Energy – For Sale (amp2012.com)
- Novus Eenrgy : CEO On Takeover Talk (amp2012.com)
