Gran Tierra Energy (AMEX:GTE)

rknapton (59.02) Submitted: 6/11/2009 7:01:21 PM : Start Price: $3.30 GTE Score: +12.24

Alright. Here is another company that appears to be overlooked and might be a real value at these price levels.

Ticker: GTE

They are involved with oil and gas exploration and production within some South American countries such as Peru and Columbia, and are doing it very well!

Recently their revenues grew by 60% and their earnings grew by a full 200%!

Yet, as of now, the company is trading at just 7 times the expected earnings for next year. This gets even better due to the fact they have $0 debt, but also have $148 million in cash (on an $811 million market cap). So on an enterprise valuation multiple it is even cheaper.

This has a chance to really continue this growth as managements "vision" is to be eventually producing 100,000 barrels of oil a day. Currently as of Q1 09 they are producing 10,390 barrels a day. And even if oil prices drop from the recent run they have had, this company appears to be positioned well as they stated in this conference call (http://www.wsw.com/webcast/rbc102/panel3/) that they are still comfortable maintaining current operations even if oil dropped back to $30 a barrel.

Technically, the stock appears to have hit a bottom last October and has since formed a nice base around the $2 level. Currently it looks to be at the high end of the uptrend that started late October, but at $3.36 it still seems like a bargain even though a slight pull-back seems likely to occur.

RK