What's driving BQI up?

[Gonz]

Anyone have an idea what's driving this up today? I can't find any news.

[microhedge]

The hype of the masses looking forward to the fall Norwest news that has been promised I would imagine... only two more days left in October.

[madcowdisease]

The hype of the masses looking forward to the fall Norwest news that has been promised I would imagine... only two more days left in October.

That and oil setting a new record, nominally speaking. Even though BQI isn't producing oil the concensus seems they are sitting on a ton. And at $93 a barrel this puppy could be worth a boat load.

[aiki14]

That and oil setting a new record, nominally speaking. Even though BQI isn't producing oil the concensus seems they are sitting on a ton. And at $93 a barrel this puppy could be worth a boat load.
The stockprice hasn't really followed the price of oil though. I think the hype is the majority of the catalyst. I am of course not complaining (I have been complaining in the chatroom now for days) about the move up today.

[Gonz]

Holy smokes! +10% today.

[aiki14]

Holy smokes! +10% today.

What is even more impressive is the move up has been on BIG volume into large selling walls the whole way. It may be hype or anticipation of news but there are sure believers out there. I am still holding, and in fact have added as we have gone up.

[Stin]

1.5million shares traded after 45 minutes
big run hopefully

[Thierry Martin]

2063

[Stin]

Would that qualify as an inverse head and shoulders pattern over the last two months?

[Goldman Slacks]

A new family moved into BQI's neighborhood this morn. and they may share their THAI :wink:

top of page 2 : http://www.petrobank.com/webdocs/news_2007/PBG_2007_11_01.pdf

more: http://www.oilweek.com/news.asp?ID=12288

[englishman26]

Are you suggesting a potential partner/buyer???

[aiki14]

Here's a relevant article from reuters titled:

Canada tax cut salves oil's sting from royalty hike
Here's the link:
http://uk.reuters.com/article/oilRpt/idUKN3134108720071031

Canada tax cut salves oil's sting from royalty hike
Wed Oct 31, 2007 9:37pm GMT
By Jeffrey Jones

CALGARY, Alberta, Oct 31 (Reuters) - A hefty corporate tax cut salves some of the financial sting on energy producers from higher royalties in Alberta and may boost the value of some oil sands assets, tax experts and analysts said on Wednesday.

"It will certainly go a long way -- although not the entire way -- of offsetting some of the additional costs created by the new royalty regime," said Angelo Toselli, energy tax partner at PricewaterhouseCoopers LP in Calgary.

"Clearly the interaction between the tax rate reduction and royalty rate increase will vary a lot from company to company, depending on what subsector of the energy patch they operate in."

Finance Minister Jim Flaherty announced C$60 billion ($64 billion) of tax cuts in his autumn economic update on Tuesday, including a gradual reduction in the corporate tax rate to 15 percent in 2012 from 22 percent now.

That was welcomed by an energy sector still gauging the impact of Alberta Premier Ed Stelmach's decision last week to boost oil and gas royalties by C$1.4 billion, or 20 percent above 2010 revenues. Those changes take affect in 2009.

Among the biggest winners from the tax cuts are developers of oil sands projects that have yet to start producing, said UBS Securities analyst Andrew Potter.

Their net asset values could increase by 6 percent to 12 percent, which more than makes up for the reduction caused by higher Alberta royalties, Potter wrote in a note to clients.

Tax cuts could mean a rise in value per barrel of up to 3 percent for projects already producing, he said.

But different royalty treatments for oil, natural gas and oil sands will mean the phased-in tax cuts have varying effects on the industry, and benefits increase over time.

"Next year it will be relatively marginal at 1 percent (reduction in tax rate). But as this policy grows in four years it will definitely be meaningful," said analyst Chris Theal of Tristone Capital.

Kyle Preston, analyst with Salman Partners, pointed out that companies spending large amounts of capital to develop oil sands projects already defer the taxes for several years.

"The benefit of the cut is so many years out that the present value of it probably isn't as significant as the royalty rates that are kicking in in 2009," Preston said.

Amid an oil-industry outcry, Stelmach announced higher royalties in Canada's biggest producing province that are more sensitive to swings in oil and gas prices.

Many oil executives and some industry analysts had said they expect to cut spending as a result of the higher government take in Alberta, and smaller players have warned their cash flow could be chopped by double-digit percentages.

However, Canadian oil and gas shares have climbed since the changes were announced. The Toronto Stock Exchange's oil and gas subgroup surged 3.4 percent on Wednesday, helped along by a spike in crude oil prices above $94 a barrel.

With the changes to the federal and provincial policies, Ottawa could find its take from the industry will drop, due to the tax deductibility of royalty payments.

However, surging oil prices work against that effect, Toselli said.

"It will be interesting to see if the government will do anything about that, whether they will continue to allow the deductibility of Crown royalties," he said.

($1=$.94 Canadian)

[freakscene]

love those tax cuts ;)

[Albert0373]

Any bets on seeing 6 this early morning? Good luck to those holding it : )

[chinaman711]

Its time for BQI to make a big move, finally getting some attention.






Energy was the hottest sector of the day on Wednesday, led by some smaller, less-known companies like Oilsands Quest and Superior Energy Services. As a whole, the industry struck oil, as the Energy Select Sector SPDR (amex: XLE - news - people ) gained $1.76, or 2.4%, to $76.45 in afternoon trading.

Small cap oil and gas company OilSands Quest proved to be an attractive pick, climbing 44 cents, or 8.8%, to $5.42 on Wednesday. The Calgary, Canada based-company is known for its exploration and development of oil sands deposits in Saskatchewan and Alberta. In August, Oilsands Quest (amex: BQI - news - people ) obtained five strategically located oil sands exploration licenses in Saskatchewan, bringing the company's total oil sands land holdings to 707,770 acres. The company's stock has gained more than 80% over the past six months.

Superior Energy Services (nyse: SPN - news - people ), a mid-cap energy company, also made gains on Wednesday. Its stock rose $2.75, or 7.8%, to $37.14 in afternoon trading. The Harvey, La.-based company released its third-quarter earnings on Monday, reporting profits of $75.1 million, or 91 cents per share, compared with $55.2 million, or 68 cents per share in the similar period a year prior.

Superior Energy Services is a provider of oilfield service equipment focusing on the drilling-related needs of oil and gas companies. The company's stock reached its highest selling point ever in July of this year at $40.24, and has gained almost 14% year to date.

Recently, Superior Energy Services suffered numerous tropical storms in the Gulf of Mexico, which caused damage to its rental tools in that region. According to Lehman Brothers analyst James West, the company "posted good third quarter results despite difficult conditions in the Gulf of Mexico during the quarter." West added that "the company's geographic diversification mitigated some of the softness."

The big money energy companies made gains on Wednesday

[chinaman711]

Petrobank's wholly-owned subsidiary, Archon Technologies Inc., has entered
into a license and royalty agreement with Duvernay to allow Petrobank's
patented THAI(TM) process to be utilized on the Dawson Property and within the
AMI. Archon will earn a ten percent gross overriding royalty on Duvernay's
share of production following recovery of a specified amount of production.
The acquisition of the Dawson Property and the licensing agreement with
Duvernay is an important first step in Petrobank's development plans for the
commercialization of the THAI(TM) technology on a global basis. The Dawson
Property and AMI cover an extensive heavy oil belt with a number of large
existing conventional cold heavy oil production operations that typically
recover only 6 to 10 percent of the original-oil-in-place. The application of
the THAI(TM) process in these reservoirs has the potential to increase
recoveries up to 70 to 80 percent.
Saskatchewan Land Position Established
In addition, Petrobank has acquired a 23,040 acre Oil Sands Licence in
Saskatchewan. The licence has a primary term of five years and forms the basis
for a possible future expansion of the application of the THAI(TM) technology
into an exciting new potential oils sands resource fairway.

[chinaman711]

BQI resistance is at 6.22 and all buys from barchart.com Composite Indicator
Trend Spotter TM Buy

Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Buy

Short Term Indicators Average: 100% - Buy
20-Day Average Volume - 2861930

Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy

Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 2670392

Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy

Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 3220403

Overall Average: 100% - Buy

[Damon]

There's $6.

[deerhunter]

I sold half of my shares at 6.10. It's hard to beat a 88% gain. I'm just going to hold on to the other half and see what happens.

[chinaman711]

If BQI gets thru 6.22 by the close look for 7 real quick imo. 6.33 looks to be a breakout

[Goldman Slacks]

More related news: http://www.theglobeandmail.com/servlet/story/LAC.20071102.RPETROBANK02/TPStory/Business

"There has been speculation in the oil patch that, in addition to the Duvernay deal, Petrobank is on the verge of licensing its technology for a major oil sands project. However, Mr. Bloomer said the company would likely continue to seek more nimble partners for the time being.

"[Reaching a deal with a major] wouldn't be consistent with our business plan and strategy as it would slow us down," he said, "We want to move with people that are of a like mind to us, and we'll pick our partners strategically."

[chinaman711]

http://seekingalpha.com/article/52376-the-reasoning-behind-oil-s-irrationality

[Gonz]

This stock has systematically defied my every attempt to understand it, so I'm putting it to all of you: is this a good time to sell? I got in a couple months ago at $4.37, but I don't think this run is finished.

How's everyone playing this?

[chinaman711]

Holding for the news, big money coming in now. Look for 10 imo

[chinaman711]

Whats driving up BQI? I think everyone in the chat room was adding to BQI : )

[chinaman711]

A trade at 6.65 for 286,600 shares went thru in after hours

[blynch]

Wish I didn't sell off half my position when BQI moved down in aug, figured I'd buy back in under 4. Still making some nice gains off this, but I'd like a bigger position for the long term. I'm going to wait to see if there is a dip to add.

[bigzip]

Man what I close at HOD on huge volume. Maybe the Norwest assessment next week?

[microhedge]

I really have nothing useful to say that hasn't been said... just thought I would do here what I did three more times today with BQI... ADD:wink:

[chinaman711]

Heavy volume in the last hour and in after hours. Were going higher imo

[aiki14]

Whats driving up BQI? I think everyone in the chat room was adding to BQI : )

The huge group Karma generated from all parts of the country, and Idaho, and focused by the astral lens of the chatroom, is forming a vortex of stock price anti gravity.
For those who don't participate in the forum chatroom, the mutual backslapping that has gone on during the recent RISE TO GLORY of BQI has been nothing short of hysterical.
And if I were to guess the same anti gravity is affecting ASTI as well.

[englishman26]

Got to love those anti-gravity plays! ;)

[chinaman711]

investment into the great Alberta oil-sand boom...

A backdoor play is a way of participating in a popular investment idea that few other people have thought of. It's covert. It attracts scant attention. The crowd has no idea it exists. But it's the only sensible way to invest in a hot idea.

Imagine you're trying to get into a fashionable nightclub after 10 p.m. The club is full. The bouncers won't let anyone else in. The people inside bought tickets months ago.

You have two choices:

You can join the back of the line. You'll probably wait for three hours. It's likely the door attendants will deny you anyway. And even if they let you in, you'll probably face a steep cover charge...

Or you can find the back door. It's probably down an alley somewhere, near the dumpsters, where the bar staff leaves the empty beer kegs. Slip the barback a $20 bill next time he comes out with trash. He'll let you in through the fire exit. You won't pay the cover, and you won't wait in line like everyone else...
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It's been called the "biggest government giveaway ever"... and it's perhaps the most lucrative income opportunity I've ever heard of.

Last month, Toledo native Martha Toll collected over $46,000 thanks to this. And she stands to collect at least that much in the weeks to come.

I'm talking about the government-sponsored HiRA. And if you've never heard of it, I urge you to click here.
-----------------------------------

This analogy isn't perfect. Sneaking into nightclubs is much more risky than what I have in mind, but you get the idea...

That's exactly what we did with PrimeWest (NYSE: PWI). PrimeWest is the Alberta natural gas trust I recommended two months ago as our backdoor play into the Athabasca oil sands...

The oil sands are a huge deposit of oil, just across the U.S. border in Canada. The Canadian government says Athabasca holds more oil than the entire Middle East.

The oil-sands region is the size of Florida. So far, energy companies have mined only about 3% of it. The U.S. Energy Information Administration (EIA) estimates production in the oil sands will quadruple to 3.3 million barrels of oil per day by 2025. Other sources I've checked – including official Canadian government statistics – say the same thing.

The press calls Athabasca the "savior of American energy policy." New companies are rushing to set up operations there, and investors have piled into the obvious oil-sand investments... like Suncor (NYSE: SU), five-year return: 595%; Canadian Oil Sands Trust (TSX: COS-UN), five-year return: 444%; Petro-Canada (NYSE: PCZ), five-year return: 304%; and Oilsands Quest (AMEX: BQI), five-year return: 3,328%.

For investors, Athabasca is the hottest nightclub in the energy sector.

If you want to invest in Athabasca today, you can either join the back of the queue and buy the same expensive investment vehicles as everyone else, or you can buy cheap Alberta natural gas assets – such as PrimeWest – and walk in through the back door.

We chose PrimeWest... and it paid off big time...

On September 24, PrimeWest's management announced a large oil company from the United Arab Emirates – the Abu Dhabi National Oil Company (ADNOC) – had offered to buy PrimeWest for C$26.75 a share in cash. The stock jumped 34% on the news. We paid $19.58 only six weeks earlier.

I advised readers in a September 24 e-mail to sell their PrimeWest shares and bank the 35% profit.

Natural gas is an essential supply line for the oil refiners. It's a scarce resource, but they simply cannot produce oil without it. I picked PrimeWest because it's a natural gas producer, located near the giant oil-sand operations.


The Secret of the Dump-Truck Tires

The Most Dangerous Highway In Canada... Again!





If you'd like to invest in the great Oil-sand boom, look for natural gas producers near oil-sand operations. They are the perfect backdoor play.

Good investing,

[netwrangler]

The huge group Karma generated from all parts of the country, and Idaho, and focused by the astral lens of the chatroom, is forming a vortex of stock price anti gravity.
For those who don't participate in the forum chatroom, the mutual backslapping that has gone on during the recent RISE TO GLORY of BQI has been nothing short of hysterical.
And if I were to guess the same anti gravity is affecting ASTI as well.Probably only Northern Idaho, but don't forget Sedona. 8)

[madcowdisease]

This stock has systematically defied my every attempt to understand it, so I'm putting it to all of you: is this a good time to sell? I got in a couple months ago at $4.37, but I don't think this run is finished.

How's everyone playing this?

I woudn't sell now. There is huge volume on this thing today at ~ 9 million shares and a 13 week average of less than half-a-million. If volume drops and it fails to make a new high you could consider selling but certainly not now. Let it run for a bit.

As for how I'm playing it? I like the long term prospect of this company but I have traded around a core position based on technical indicators.

[Svenwulf]

older news, i guess i had the tin foil crooked. maybe not so much bqi, but a good generator of ideas, im sure. enjoy-

PM hears from both sides of Alberta's oil boom

Updated Mon. Nov. 5 2007 7:07 PM ET
The Canadian Press
FORT MCMURRAY, Alta. -- Prime Minister Stephen Harper took his first tour of northern Alberta's multibillion-dollar oilsands bonanza Monday, then heard first-hand about all the problems the massive projects are causing.
Harper and his entourage flew over the massive mining excavations by helicopter and then climbed aboard a three-storey high, heavy hauler earth-moving machine. He then shook hands with Syncrude Canada employees.
Back in Fort McMurray, community leaders met with the prime minister in a closed-door invitation-only meeting and told him about the flip side of developing Canada's energy riches.
"We need housing, we need better roads and we need better medical services,'' said businesswoman Francis Jean, who is also the mother of the region's Conservative MP, Brian Jean.
"People are paying exorbitant rents, making it difficult for families to move to here,'' she said.
Other community leaders were equally as blunt.
Melissa Blake, mayor of Wood Buffalo, the municipality that includes Fort McMurray, said it is great to have the prime minister visit an area that will provide much of Canada's economic oomph over the next decade.
Blake said while much of the region's problems fall within Alberta's jurisdiction, she hopes the federal government will contribute money to help the community build the road, water, sewer, health and other infrastructure projects it will need to flourish.
The population of the Fort McMurray area has doubled to 90,000 people since 1999 and continues to grow quickly.
"It is the challenge of having a population that has doubled and is projected to triple within 15 years,'' Blake said.
"The infrastructure is simply not keeping pace under the regular funding mechanisms. We are looking at the possibility of sharing costs with other levels of government -- be it federal or provincial.''
Just last week there were media reports of people in the area finding notices posted on their doors warning of impending rent hikes exceeding $1,000 a month.
Harper would not speak to the media about the meeting, his tour of the oilsands or any other issue.
Jean said the prime minister will take the message that he heard from community leaders back to Ottawa. The MP said no promises were made of immediate federal money to help deal with Fort McMurray's growing pains. Jean said Ottawa must respect Alberta's jurisdiction.
Other community leaders also spoke about the labour shortage. Alberta estimates it will need 20,000 new workers over the next seven years just to replace those retiring or moving on.
Last year Wood Buffalo recorded triple the provincial average of traffic accidents and had a rate of sexually transmitted diseases four times higher than the rest of Alberta.
The health region has complained of dangerously strained medical resources and a shortage of doctors.
All the blunt talk didn't spoil the satisfaction community and business leaders felt about Harper's visit.
"The fact that he came here tells me that we are on his radar,'' Blake said.
Syncrude Canada spokesman Alain Moore said employees were proud the prime minister took the time to tour the project.
"They were thrilled and honoured to have a person of that national stature see our facility.''
Harper was to fly to Castlegar, B.C., Monday to give an evening speech at a Conservative Party of Canada event.



http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20071105/harper_visit_071105/20071105/

[Rich]

A report from last year, but this has a lot of information as to why BQI and others have risen in the past and why it probably will continue to be an investors trading stock.

http://video.google.com/videoplay?docid=7795287454054769328

[Rich]

"An investment today in Oilsands Quest should make us triple figures through several scenarios"

A report from another site dated March 20, 2008
VERY informative in several areas, well worth your examination!

Copywrite denies me permission to copy and paste this, so here is where you can read it.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=27546114

[freakscene]

thanks for the post rich.

ive been considering dumping my measely shares already labeling it dead money. im averaged in around 4.30.

even though i find this read a bit speculative and somewhat confusing, it was just enough to make me reconsider.

also, if he's predicting such potential, why is he then suggesting only buying up to 4.75 per share???

lots of "ifs", but i'll hold

[bigzip]

ive been considering dumping my measely shares already labeling it dead money. im averaged in around 4.30.



I was thinking the same thing with mine (avg 4.25) after the crap it took in Jan, but decided to hold. I agree with the article that the potential here outweighs the downside risks. Oil isn't getting any cheaper, and if they can figure out a good extraction method, this thing will explode.

[madcowdisease]

I think the most likely step is the final one where a mid major comes in and either picks up the rights to some of their land leases or takes them over all together. I have a large portion of both an IRA and my discretionary account in this thing between $3.25 and $3.50/share. I too have labelled it 'dead money' and don't follow it much. My time horizon has always been 3 yrs out. Given this time horizon I think we could see it as a 3 bagger. I won't try and time it, but rather be content knowing that a 300% gain 3 yrs from now averages out to 100% a year - minus the benefits of compounding, but I haven't seen returns like that since I dumped penny trading.

Good luck to all.

[MrSer]

I am thinking about purchasing some more, but i believe oil will go lower next week and will make bqi cheaper. I want to grab some around 3.50 thinking about 3k or so.

[Rich]

I am thinking about purchasing some more, but i believe oil will go lower next week and will make bqi cheaper. I want to grab some around 3.50 thinking about 3k or so.

Cheaper? RIG always seems to go lower when oil goes up and higher when oil goes down..... I asked this on the chat and several think its because when oil goes up supply goes up and there is a thought that less drilling will be required. Makes sense when you think of it that way. I assumed that oil and rig pricing would go hand in hand but I havent viewed it as such. Seems to follow the S&P more than the oil, check it out and see if I'm mistaken, I could be

Rich

[MrSer]

Well either way i think I'm going to purchase a good amount of shares of bqi. Their assets keep increasing and look like the next SU.

[BentleyVTech]

I've been following it since last August, and held on to it too long when it dropped from the 6's. Its been very volatile lately with .20-.50 swings over and over. I'm thinking a good game plan is to try to get it next time it drops into the 3.70-3.80 range and sell when it gets to 4.1-2 range...but I'd probably be too late in the game.

I need to slowly start recovering some of the losses I currently have by averaging down.

[Rich]

Thats what has happened to me with just about every stock purchase except Goog.

I am in @ $3.76. I'm watching as well. Looking at a two year chart and younger charts from what my limited knowledge shows is this may go back up to $6 in short time, maybe two months... (like I said, I'm not an expert like the others.)
Rich

[madcowdisease]

Well either way i think I'm going to purchase a good amount of shares of bqi. Their assets keep increasing and look like the next SU.

Not exactly. SU mines and develops their crude themselves as well as marketing the gasoline and diesel fuel at owned (orpartnerd) retail outlets. Dont forget they drill their own nat gas for use in the refining process of the bitumen so they are not sensitive to the spot price of nat gas since it is very nat gas intensive.

BQI is none of the above. They simply find it and are looking for a mid-major to buy the rights to their land. Perhaps SU could be this figure but BQI doesn't have plans to be the next SU anytime soon from what I have read about them.

[netwrangler]

Not exactly. SU mines and develops their crude themselves as well as marketing the gasoline and diesel fuel at owned (orpartnerd) retail outlets. Dont forget they drill their own nat gas for use in the refining process of the bitumen so they are not sensitive to the spot price of nat gas since it is very nat gas intensive.

BQI is none of the above. They simply find it and are looking for a mid-major to buy the rights to their land. Perhaps SU could be this figure but BQI doesn't have plans to be the next SU anytime soon from what I have read about them.
Good analysis, MCD.

BQI still has some excellent upside potential.
But
There is many a slip
Between the cup and the lip

[Rich]

BQI is none of the above. They simply find it and are looking for a mid-major to buy the rights to their land. Perhaps SU could be this figure but BQI doesn't have plans to be the next SU anytime soon from what I have read about them.


So, in other words, this is a long play for when they sell the land? And if this is true, we could wait a very long time between sales.......... If I'm correct with this assumption, then it would be an in and out game after they made a sale?

Rich

[freakscene]

sell the land, or find a partner, or get bought out

considering the company has an increasing negative net income, and has since 2003, its the only way

[jclark4]

Found this on my email today, wonder who they could be talking about :hmmmm:?
http://www.stansberryresearch.com/PRO/0803OIL57549.asp

[aiki14]

Found this on my email today, wonder who they could be talking about :hmmmm:?
http://www.stansberryresearch.com/PRO/0803OIL57549.asp

Makes some of the interesting price moves of late even more interesting. I'd be watching for incoming volume in the near future.

[madcowdisease]

I laugh at the irony that these ubiquitous publications claim "no one is talking about this company". This thing may not be as well covered as XOM or MSFT but it is certainly known to anyone who researches stocks, particularly those looking for a small cap play which is most individual investors.

Heck, here's even a handful of institutional investors that are well aware that this puppy exists:

Goodman & Company Investment Counsel
Wellington Management Company, LLP
Vanguard Group, Inc.
Barclays Global Investors,
N.A. State Street Global Advisors (US)
Jones Heward Investment Counsel Inc.
GLG Partners, L.P.
Goldman Sachs & Company, Inc.
Croft-Leominster, Inc.
U.S. Trust, Bank of America Private Wealth Managem
Coghill Capital Management, L.L.C.
WealthTrust Advisors, Inc.
Zweig-DiMenna Associates, Inc.
Lucas Capital Management, L.L.C.
College Retirement Equities Fund

[Gzapper]

sasquash with michael mcdonald as a tutor :slug: