Ivanhoe Energy, Inc. (USA) (NASDAQ:IVAN)

Nice yearly chart, good prospects to achieve $3+ in first part of 2012.

This is an extremely overvalued company. It has never been profitable, and is actually losing an increasing amount of FCF every year.

Its over for this stock.

consensus

MAJOR GAS FIND IN CHINA; NET ENERGY POSITIVE PROCEDURE FOR HEAVY TO LIGHT OIL; SIGNIFICANT LAND HOLDINGS

New reserves and higher demand = more EPS.

I believe that with all the exposer and the natural gas finds this stock will be the "darling"of Wall street.

riding the 2nd wave

A lot of oil and gas to drill.

many many reserves

Yes its a spec play, but the technology appears to be similar to a resid FCC, which is hardly new technology. I read in World Heavy Oil Congress Paper 2008-329, that the CDF was rated to run 1000 bpd of California Heavy crude, and was tested on a roughly 300 bpd vacuum resid feed. With resid being 30% of crude, this seems adequate.

The key for further investment in the technology is higher crude to product price differential, which hasn't been great the past couple years. I bought IVAN a few years ago and will likely add more as I see refining margins getting better. As I mentioned, I don't think what they are trying to do is that different from what has been done in refining for the past 30 years.

Damaged due to the BP aftermath but still retains a large amount of major institutional ownership. Huge profit potential on this one.

new process that can utilize sub standard crude

With this company the sky could be the limit. Lets look at the facts. First this company has developed an exclusive technology called HTL. This technology is able to upgrade heavy oil, like the kind found in tar sands, into more valuable lighter oil and do it cheaper and faster than ever before. So what does this mean? It means while other companies are struggling to squeeze a profit from heavy, less valuable oil, this company has the ability to transform this oil into more expensive, easier to market oil up to 20,000 bpd. This also gives the company the chance to produce additional revenue from leasing their technology to other oil companies. Now some other good stuff..... The Tamarak Canada tar sands is 100% Ivanhoe with 440 million barrels of oil, with phased production to 50,000 barrels per day production.
The Pungarayacu, Ecuador is a 426 sq. mile oil field that could boast up to 12.1 billion barrels of oil. (2009 estimate by Gaffney Cline & Associates) Goldman Sachs owns 6 million shares of this company and values the oil in this field alone at 1.32 trillion.
Now we go to the China / Mongolia assets. The company also has a 30yr contract with PetroChina. ( China's largest oil& gas producer ) This lease covers 900,000 acres with an estimated 5 trillion cubic feet of natural gas.
As I said before, Golman owns 6 million shares of this company and could put their money anywhere they want and nothing says more about the prospects of this small company than having large institutions buying shares. I think this is a fantastic opportunity to invest long term in a company that is going to go places.

Good holdings; good technology; good business plan.

I like the fact that IVAN has not dilute their number of shares like some other "below a dollar" stocks. The current price seems to be stabl. Depending on the current development at Ecuador, IVAN has a great chance become a player in oil production.

Ivanhoe is a growing company with new operations developing in several countries. It will soon be making a profit, and then everyone will want some of it. Someone has been loading up on it lately because they can see the future payout.

IVAN has a technology and money to make it happened

Ivanhoe has both proprietary technology for heavy to light crude conversion on site, and an extensive oil exploration and drilling program in sites in a number of locations around the world. The HTL technology is a long time in the making, well protected and hard to copy. The oil exploration makes them also a player in oil itself which puts them in a good revenue position for the future (and thus far they've been able to fund operations from this and from IVN their copper mine). It also makes them a player over the length of the value chain which strengthens the position of the technology wrt potential icensing or partnership with other producers who have heavy crude sites.