Topic: How To Invest

Hi Pat: Would you please comment on Rock Energy? Thanks.

Article Excerpt

Rock Energy, $6.49, symbol RE on Toronto (Shares outstanding: 39.9 million; Market cap: $259.0 million; www.rockenergy.ca), produces oil and gas in Western Canada, with a focus on the greater Lloydminster area, along the Alberta/Saskatchewan border. Its output is 94% oil and 6% gas. In the three months ended March 31, 2014, the company produced 4,899 barrels of oil equivalent a day, up 52.4% from 3,214 barrels a year earlier. Rock’s cash flow per share jumped to $0.39 from $0.08. The company’s total debt of $17.8 million is just 6.9% of its $259.0-million market cap. That, plus its rising cash flow, gives it the funds to keep drilling and increasing its output. The stock trades at 4.3 times the company’s forecast 2014 cash flow of $1.52 a share. Rock Energy is okay for aggressive investors to hold. hold. …