Morning Stock Pick Oilsands Quest (BQI) Long Term Bottom, Acquisition Target
Oil has just broken out of resistance and $100+ oil should be following shortly. Recently in Canada Suncor and Petro Canada merged in order to prevent a takeover from overseas especially China whom are very interested in Canadian Oilsands.
The best value at the moment and the nicest looking chart is Oilsands Quest (BQI), which is the largest holder of contiguous oil sands in Saskatchewan the province which borders Alberta. They have a huge land position and as the price of oil increases and the economy continues to grow especially in Asia I would not be surprised if they get an offer either from overseas or by one of the larger oilsands operators like Suncor. In order for oilsands to be profitable oil has to stay over $75 a barrel.
Oilsands Quest is trading below book value and right now can be a quite profitable investment as their land position contains over 2 billion barrels of discovered resources.
Take a look at this map of their land position.
I believe oil will continue higher as the economy is stabilizing, the dollar is falling and emerging markets are growing. The chart is also showing a major base and breakout where BQI sold over 15 million shares a week ago.
The floor has been established and the 15 million share breakout of the rectangle pattern was a huge development as major institutions are adding at this price level. Moving averages have crossed and are pointing higher. The odds make me prepared for a major move higher.
Disclosure: I own shares of BQI.