Edge Resources (EDE.VN). Micro cap that looks very interesting

[stockpickguru]

Edge Resources on the Canadian Venture exchange (Symbol EDE.VN) looks to be very under-valued. 

I made a post, I'm not sure why it was deleted.  I have been in the business for many many years and I am posting about a stock that I have done a lot of analysis on.

This company is not very good at promoting themselves, or else the stock would already be at $1.  Their current assets are double what the market value is right now.

I have done tons more research and would love to post it if it will not get removed!

[andykbob]

I would like to see some more info. I know of a few others that are looking at this company as well.

[stockpickguru]

I've been looking at this company for a while now and this is how I came to the conclusion it is so under valued currently:

The 3rd party evaluation does not include 3 additional locations per earned section for a total of 17 x 3 = 51 additional locations at a net equity value (gross value of $1.5mm less drilling cost of $500k) of $51mm or approx. $1 per share

3rd party evaluation does not include an additional 34 sections of signed farm-in deals, each of these has a net equity value (gross value of $1.5mm less drilling cost of $500k) $1mm x 34 = $34mm plus additional 3 locations per section or 34 x 3 = 102 locations at $1mm net equity per location or $102mm Total of this additional net equity of $2.50/share

Additional opportunity for farm-in sections of 100 to 150 sections with up to 4 locations per section. These are not signed deals as yet but with the successful completion of the drilling of signed sections these should become available to Edge.


Plus the price ratio of natural gas to oil is 20:1 right now!  It is due for a huge correction which would increase Edges asset values a lot!

[stockpickguru]

The stock is up 10% this week and looks like it will keep moving.

The current construction phase should be finished by the end of the month.  At that point they will start ramping up production.

Also the acquisition announced on January 5th is going to be a great addition to the company’s current assets.

[stockpickguru]

I was right, it has been moving up every day.  At $0.38 now with no end in sight!

[andykbob]

THAT IS FANTASTIC NEWS!!!!!!!
I hope it goes up to $1. That would be fantastic.

[stockpickguru]

$1 is not very far away!  I am waiting for $1 and beyond.

[ProspectingJournal]

I wrote up Edge in the May 2010 issue of Resource World Magazine in my Oil Patch Report column. I liked what I heard from President Brad Nichol. It seemed that he had an eye for natural gas and how to make it economic during times of mid to low gas prices. Now that it's winter time in Canada, there's no reason that this stock is done surging. These guys have a plan, and it's a good one. Look for more from them to come.