CHAR.OB

[David Randolph]

I just read an analysis made by fousc on the stock picking board and I just loved the story and the fundamentals of the stock he's covering.

Here's the link for fousc's analysis: Chaparral Res Inc(CHAR.OB)**Exploration & Production

Revenue and profit growth is nothing south of outstanding, and the market cap is just $227M for this highly profitable oil company. In fact, if the company can just maintain the last quarter's results, the earnings multiple would be just 4.5.

I'll buy 10% of the Pennies on Fire Portfolio around today's open on CHAR.OB.

[fous]

Good man Dave

Michael mentioned that he has done some DD on CHAR.OB and didn't like the fact that Lukoil is a main shareholder of the company. Still havn't heard back from him on why but Lukoil is the largest oil company in Russia and i took a look at Lukoils chart which is traded on the PK's here in the US. And its a beauty. Lookin at the chart i would have to say i like Lukoil being a main holder. Until Michael proves me wrong. More on lukoil at www.lukoil.com

-fousc

LUKOY.PK

[shipman]

Has anyone looked at IVAN the last couple days.

[poorman1]

Forbes article just out (see bottom of report for mention of CHAR.ob):

http://www.forbes.com/2006/01/19/tesoro-valero-marketocracy-in_kk_0119soapbox_inl.html?partner=yahootix

Four Energy Essentials
Ken Kam, Marketocracy Marketscope, 01.19.06, 12:30 PM ET

 

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SAN FRANCISCO - Our energy investments are beginning to perform again, as the market is beginning to realize how tight the supply and demand for oil truly is right now. The economy is booming, so the upward pressure on crude oil and natural gas is not going away.

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The illusion that the energy problem is under control is driven by three factors: all-out OPEC production, the International Energy Agency's release of 60 million barrels of oil last quarter, and a mild winter in the U.S. But things can change quickly: OPEC is talking about cutting back production, the IEA stopped releasing oil from its reserves in late December, and there may still be some cold days ahead before winter is over. Gasoline prices are already going back up all over the country.

High oil prices did not derail the economy in 2005 and won't in 2006. I don't see a recession on the horizon unless the Fed makes a mistake and pushes interest rates up too far. Barring that, I think the price-to-earnings ratios on lots of energy stocks could increase to something closer to the market average. The S&P 500's P/E is about 16, so Valero (nyse: VLO - news - people ) and Tesoro (nyse: TSO - news - people ) would have to appreciate by 45% just to get to a market average P/E assuming no further growth in earnings. That kind of upside justifies keeping our energy positions open.


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The prospects for new refinery capacity coming online this year, next year or the year after that are slim to none. Experts tell me that it will take ten years to bring a new refinery online, with most of that time spent simply getting all the permits.


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We recommended PetroKazakhstan (nyse: PKZ - news - people ) in July 2005 at $37. It promptly jumped after only a few weeks when the Chinese National Oil Corp.'s $55 offer was accepted in a fierce competition that included the Oil and Natural Gas Corp., the Indian energy company and Russian rival, Lukoil (other-otc: LUKOF - news - people ).


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Many of the things we found attractive about PetroKazakjstan we also see in Chaparral (nasdaq: CHAR - news - people ). Like PetroKazakjstan, Chaparral's oil reserves in Kazakhstan are desirable because they are outside of the volatile Middle East and close to pipelines that can carry the crude to Russia, China or India

Many of the things we found attractive about PetroKazakjstan we also see in Chaparral (nasdaq: CHAR - news - people ). Like PetroKazakjstan, Chaparral's oil reserves in Kazakhstan are desirable because they are outside of the volatile Middle East and close to pipelines that can carry the crude to Russia, China or India.

[stocky]

CHAR.OB is a good pick. I am already holding it.

[fous]

A new trend is forming, I'd like to see it rally tomorrow back away from this trendline.

[Jimbo]

Not good...........

Chaparral Resources announces new Chief Executive Officer and temporary suspension of drilling activity

[healey]

Hell of a drop. This news was out at 10:42am Wait it out and see how bad the damage is

WHITE PLAINS, NY, Jan. 24 /PRNewswire-FirstCall/ - Chaparral Resources, Inc. (OTCBB: CHAR - News; the "Company") today announced that the Board of Directors of the Company has elected Boris S. Zilbermints, a current Director of the Company, as Chief Executive Officer of the Company to replace Simon Gill who resigned following the merger of the Company's former majority shareholder, Nelson Resources Limited ("Nelson"), with and into Caspian Investments Resources Ltd. ("Caspian"), a wholly-owned subsidiary of LUKOIL Overseas Holding Ltd. ("Lukoil"). Mr. Zilbermints is Lukoil's Regional Director for Kazakhstan.

The Company also announced today that its operating subsidiary in Kazakhstan, JSC Karakudukmunay ("KKM"), has temporarily suspended the drilling of new wells in the Karakuduk Field. This temporary suspension is the result of the unexpected decision by Oil and Gas Drilling and Exploration of Krakow ("OGEC") not to renew its current drilling contract with KKM which had expired on December 31, 2005. OGEC is now in the process of finishing demobilizing the rig from the Karakuduk Field. The Company is using its best efforts to secure another rig to replace the OGEC rig as quickly as possible and plans to resume its drilling program as soon as a new rig can be secured. However, it is uncertain at this time when the Company will be able to resume its 2006 drilling program. The drilling campaign delay could potentially lead to lower than anticipated 2006 production levels. In the meantime, the Company will continue with its current workover operations and other field development and production activities.

Mr. Zilbermints, the Company's CEO, stated that "The temporary suspension of drilling activities will permit KKM to conduct a detailed analysis of the geological data from its recently drilled wells and will also enable KKM's ongoing facilities development program to keep pace with current and future productive capacity."

[oicpecnoc]

I thought 1k shares of char on a pull back at 5.77 was going to be one of my better trades of the year.  The Forbes article came out shortly after.    I got out at 5.05, trying to avoid past mistakes of holding too long in the midst of bad news.  When you combine trading mistakes with misfortune, this becomes a very difficult game to win.  

[healey]

I thought that also, my buy at 5.76 was a good one. I had gut feeling something was up with the trading the last few days, it reminded me of HEPH,(10 to 11 and back to 10 in a day and then broke and now sits at around 5). But HEPH I got out of, this one I just bought 1/4 more of my original amount at 4.90. When they get a another rig and pick up production again the price should recover....but always ready to bail. I don't know if you can apply any technicals to this but I will put in a mental stop loss of 4.4-4.2 just below the last bottom in Nov???

[fous]

damn it.............

[David Randolph]

This was really unexpected 

But, on news like this the stock could be down much more than 20%, say 50%?

The news says:

«The Company's only operating asset is its participation in the development of the Karakuduk Field, in the Republic of Kazakhstan, through KKM, which is the operating company. The Company has directly and indirectly a 60% ownership interest in KKM with the other 40% ownership interest being held by Caspian which holds a majority interest in Chaparral and operates several other producing oil fields in Kazakhstan.»

That Karakuduk Field was the only one producing oil for CHAR.OB.

«The Company also announced today that its operating subsidiary in Kazakhstan, JSC Karakudukmunay ("KKM"), has temporarily suspended the drilling of new wells in the Karakuduk Field. This temporary suspension is the result of the unexpected decision by Oil and Gas Drilling and Exploration of Krakow ("OGEC") not to renew its current drilling contract with KKM which had expired on December 31, 2005. OGEC is now in the process of finishing demobilizing the rig from the Karakuduk Field. The Company is using its best efforts to secure another rig to replace the OGEC rig as quickly as possible and plans to resume its drilling program as soon as a new rig can be secured. However, it is uncertain at this time when the Company will be able to resume its 2006 drilling program. The drilling campaign delay could potentially lead to lower than anticipated 2006 production levels. In the meantime, the Company will continue with its current workover operations and other field development and production activities.»

Also ...

«The Company has directly and indirectly a 60% ownership interest in KKM with the other 40% ownership interest being held by Caspian which holds a majority interest in Chaparral and operates several other producing oil fields in Kazakhstan.»

I believe this is why Michael wasn't a fan of the fact that Caspian (Lukoil) is now the majority shareholder of CHAR.OB. The company owned 60% of KKM and Caspian held 40%. Now Caspian controls the 60% CHAR.OB owns in KKM so it controls everything.

CHAR.OB can be drained by Lukoil, I don't know.

CHAR.OB was very cheap for a reason. Know we know it, and oil production was halted.

I'm prepared to take 20% losses on stocks held on the Pennies on Fire Portfolio without any problem. I will also take profits on SVSE.OB (42% profit) just to balance things, perhaps I'll get back into it later.

[healey]

CHAR shut down of the rig could be just a weather related shut down. This news I found while digging for more news on CHAR. Maybe the drillers just gave up. I have worked in -25 degree weather I cannot imagine -45.
Wait and see, aleast it is holding on to $5


Big Sky Energy Announces the Temporary Suspension of its Field Operations Due to Severe Cold in the North-West Caspian Region, Kazakhstan
1/25/2006       

CALGARY, ALBERTA, Jan 25, 2006 (CCNMatthews via COMTEX) --
Big Sky Energy Corporation (OTCBB:BSKO) (the "Company") announced today that due to severe cold weather, with temperatures in excess of -45 degrees C and winds up to 70 kph, it has temporarily suspended its seismic, well work-over, and drilling operations in its Atyrau, Karatal, and Morskoe blocks. In addition, the Company has temporarily stopped oil production at its Morskoe oil battery until this cold weather abates.

"According to Atyrau Hydrological Centre, this is the coldest weather on record for this region of the Caspian since 1972, and most area schools, universities and some government offices have closed down," stated Mr. Al Sehsuvaroglu, the Company's President and CEO. "While operations in the field are suspended, we are proceeding with our plans to mobilize rigs to continue our drilling activities, along with ramping up production once the weather situation improves."

[David Randolph]

I don't think it was the weather healey, read this:

«This temporary suspension is the result of the unexpected decision by Oil and Gas Drilling and Exploration of Krakow ("OGEC") not to renew its current drilling contract with KKM which had expired on December 31, 2005. OGEC is now in the process of finishing demobilizing the rig from the Karakuduk Field.»

Good luck, though 

[setravis]

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