|
Article Directory
|
+ Authors
+ Articles
|
|
|
|
Cohen Research Report Bullish on Pacific Asia China Energy
Copyright (c) 2006-2012 StockInterview.com
Written by: James Finch
We reviewed a research firm's report on a coalbed methane company. Cohen Independent Research Group issued a Buy recommendation on the shares of Pacific Asia China Energy (TSX: PCE), calling those shares "grossly undervalued." Why is it undervalued?
A recent report published by the Cohen Independent Research Group, called Wall Street's #1 Independent Research Firm, rated Pacific Asia China Energy (TSX: PCE: Other OTC: PCEEF) a Buy. The 68-page research report set three wide-ranging valuation levels as price targets for PCE shares for the company's coalbed methane concessions in China. Considerations such as the wide range of the Guizhou's abundant gas reserves, expected prices of natural gas during the research firm's forecast period, and discounting factors, such as the stock price's high volatility, were included in their price targets.
PCE shares, which closed at C$1.16/share on nearly 131,000 shares trading hands on June 19th, were given long-term fair market pricing of C$1.96/share by Cohen Research. This pricing was under the most pessimistic scenario. The low-case scenario included a natural gas price as low as $275 per 1000 cubic meters, and included a discount rate of 25 percent on the stock price. Cohen also reported, in the report, that at the current market price, PCE is "grossly undervalued."
Cohen Research wrote, "As per our Base Case scenario estimates, the NAV of PACE's resources falls in the range of C$5.31 - 7.83 per share (with a discounting factor of 20 percent)." Under the most optimistic pricing, assuming natural gas at $375 per 1000 cubic meters, Cohen targeted PCE shares at C$11.56/share. Cohen Research used the Net Asset Value (NAV) based method, which is one of the most accepted methods to value mining companies.
PACE, the acronym for Pacific Asia China Energy and not the stock's ticker symbol (which is PCE, trading on the Toronto Venture Exchange, or TSX), is fortunate that one of its concessions is in the Guizhou province of China. Estimates describe this Chinese province as hosting more than 20 percent of China's coalbed methane (CBM) reserves. The country's total CBM reserves have been independently estimated to exceed 31 trillion cubic feet.
PACE was the first Canadian publicly traded company to participate in China's granting of CBM concessions. PACE is participating in the Baotian-Qingshan CBM project through its wholly owned subsidiary Asia Canada Energy (ACE). China's state-owned CBM company, China United Coalbed Methane (CUCBM), granted the 970-square kilometer CBM concession in September 2005 to ACE. The Baotian-Qingshan concession is located in the CBM-rich Guizhou province.
The Cohen Research NAV levels confirm what we anticipated. Earlier this year, we had reported on the assessment by Sproule International on the Baotian-Qingshan property. On March 1st, PACE had released three scenarios presented in the technical report filed by Sproule. The worst-case scenario on the property showed 504 billion cubic feet for three coal seams. The high case volume scenario for seven coal seams reached as high as 11.2 trillion cubic feet. Sproule's assessment, called the "Most Likely Case volume" estimated 5.2 trillion cubic feet. Some analysts have valued each trillion cubic feet of gas at C$1 billion market capitalization.
This valuation does not include PACE's other CBM concession in China, the Huangshi project, where the company began drilling test wells in mid May. Nor does this include the company's joint venture partnership with Mitchell Drilling Services of Australia for the exclusive use of the drilling company's Dymaxion(r) system in China. We interviewed Nathan Mitchell, president of the drilling company, who was both optimistic and excited about his company's joint venture with PACE, and looked forward to expanding his drilling operations into China.
Mitchell told us, during that interview, his drilling company's technology made it possible to extract gas for around US$1.25 per mcf. This would help make potentially "uneconomic" gas more economic under a very pessimistic scenario. Revenues from others using the Dymaxion system in China would flow into the coffers of both PACE and Mitchell. Obviously this joint venture is moving forward. On June 8th, PACE announced it had appointed a country manager for the joint venture, writing, "Mr. Pacey will oversee all aspects of the joint venture activities in China as the Joint Venture Company prepares to deploy Mitchell Drilling Contractors Pty Ltd's proprietary Dymaxion Surface to In-seam Drilling System later this year."
Cohen Research did warn of negatives in making a hypothetical Bear Case for PACE's projects. The research team wrote, "Commercial viability has not yet been proven." The report also pointed out that technical studies were insufficient to "accurately assess the quality of CBM" to be extracted. Current drilling is underway on both CBM concessions. On June 12th, PACE reported, "Early stage desorption data from 12 samples show a range of gas contents between 105 and 407 scf/t (3.3 to 12.7 m3/t) after 4 to 19 days of testing. These values will be exceeded as desorption will not be completed for several weeks."
The company appears on the right track and has been issuing regular progress reports, which are encouraging. As PACE progresses to its final drilling in Guizhou province, and as the price of natural gas recovers, we suspect Cohen Research will be pleased with their price targets, as might shareholders in Pacific Asia China Energy.
|
James Finch contributes to StockInterview.com and other publications. Sign up for our free update service. Just visit http://www.stockinterview.com for details. For more information about the Cohen Independent Research Group's report on Pacific Asia China Energy, visit: http://www.cohenresearch.com
|
Follow "The Phantom Writers" on Twitter
(@phantomwriters)
to be notified when new articles are made available.
VOTE ON THIS ARTICLE
Needs Work >>
0 -
1 -
2 -
3 -
4 -
5
<< Excellent Article
Tell our authors what you think about their article.
|
Top-Level Category: Finance Articles
10 Most Recent Articles Written by James Finch
Will Linked Recognition Lead to a Cancer Vaccine?
Written by: James Finch |
Distributed: 2006-06-01 |
Word Count: 1080 |
Page Views: 1207
| Votes: 7 |
Rating: 1.86
Dr. Lorne Tyrrell pioneered lamivudine as the standard treatment
for hepatitis B virus (HBV). Now a success, he observed the
drug's shortcomings. Now CEO of ViRexx Medical, Tyrrell hopes
his latest development, Chimigen, will offer new hope for HBV,
other infectious diseases, and cancer.
Safest Ways to Invest in Uranium Companies
Written by: James Finch |
Distributed: 2006-04-27 |
Word Count: 0 |
Page Views: 1
Because of soaring uranium prices, hundreds of companies have
formed to capitalize upon the latest craze. How do you avoid
being fooled? Look to ISL uranium companies. About 21 percent
of the world's nuclear reactors are now fueled by uranium
mined using this method. How do you evaluate the many
uranium companies now developing their ISL operations?
All of Author's Articles on this site: James Finch Articles
Most Recent "Finance" Articles
Understanding Your 401(k), IRA and Other Pre-Tax Investments
Written by: Irene A. Majchrzak |
Distributed: 2010-08-03 |
Word Count: 1005 |
Page Views: 1130
What does all of the bad economic news mean to you, the
average investor. Well, if you are still working and
contributing to your pre-tax 401(k)'s, 403(b)'s, or IRA
savings your strategies for salvaging your retirement will
include reviewing all of the investment options found in
your 401(k), etc.
Xerox Follow Apple on the Comeback Trail
Written by: Jennifer Robinson |
Distributed: 2010-07-27 |
Word Count: 1238 |
Page Views: 1591
| Votes: 1 |
Rating: 0.00
In many ways the companies share similar fortunes. Apple
(founded by Steve Jobs, Stephen Wozniak, Ronald Wayne)
produced the first successful personal computer with a
graphical operating system. Xerox (founded by Chester
Carlson, Joseph C Wilson) were the inventors of Xerography
(later called the photocopier).
Payday Advance Loans Are Now Only One Toll Free Call Away
Written by: Tom Tierney |
Distributed: 2010-07-27 |
Word Count: 599 |
Page Views: 893
A friend of mine recently went through financial troubles
and asked me, knowing that I'm a finance writer, if I could
push him in the right direction for a short term loan to
help out with his expenses. Here's his story:
Stock Market Falls Sharply
Written by: Irene A. Majchrzak |
Distributed: 2010-07-27 |
Word Count: 879 |
Page Views: 1025
| Votes: 1 |
Rating: 1.00
The stock market has been having a bad week. Wednesday the
market ended the day down over 300 points. I heard reports
that this was the result of investors taking their profits.
Happens all the time. Then within a few days, the prices on
many great stocks is so low that the investors are buying
the stocks right back up.
Finding the Best Credit Card Applications
Written by: Jeffrey Weber |
Distributed: 2010-07-27 |
Word Count: 403 |
Page Views: 823
Online credit card applications can be confusing. That's
the way the banks want them. This article will help
eliminate some of the confusion.
Do You Know the Difference Between an Investment Advisor and a Broker?
Written by: Tome Tomaj |
Distributed: 2010-03-11 |
Word Count: 408 |
Page Views: 1129
| Votes: 4 |
Rating: 4.25
As an fee-only investment advisor I come across clients from
all walks of life. Lately I have noticed something in common
with many of these investors. Many do not know the
difference between an investment advisor and a broker who
manages and/or makes securities recommendations for their
clients' investment portfolios. With the almost
unprecedented volatility in the securities markets, you
cannot afford to dig your head in the sand when it comes to
whom is managing your assets.
Understanding Term Life Insurance and Getting Quotes
Written by: Brian Greenberg |
Distributed: 2010-01-13 |
Word Count: 520 |
Page Views: 1113
| Votes: 1 |
Rating: 2.00
Buying term life insurance can be a scary process but
understanding the different types of life insurance can
remove the fear. What you should know about term life and
how requesting life insurance quotes online can be easy and
very convenient.
The Decline in the Personal Savings Rate - What Happened to the Discipline?
Written by: Tome Tomaj |
Distributed: 2009-12-15 |
Word Count: 873 |
Page Views: 974
| Votes: 2 |
Rating: 3.50
As more and more American baby boomers are nearing and
entering their retirement years, many of them are concerned
about whether their retirement savings will last them long
enough to ensure their current quality of life, and rightly
so.
What My Mother Taught Me About Credit Cards And Family Finances
Written by: Braxton Heitz |
Distributed: 2009-12-01 |
Word Count: 1285 |
Page Views: 1617
| Votes: 19 |
Rating: 2.74
My mother is an amazing woman. She made some of the hardest jobs
imaginable look easy. No matter how hard her day was, she always
had a smile and perfect hair.
Student Credit Cards Can Help Lay The Foundation For Prosperous Adult Living
Written by: Braxton Heitz |
Distributed: 2009-11-24 |
Word Count: 948 |
Page Views: 1533
| Votes: 11 |
Rating: 2.82
Credit is one of the most fundamental aspects of the financial
structure we have built our society. In fact, a great credit
score can be one of the most valuable assets an individual will
ever have in his or her life.
Most Viewed "Finance" Articles
Using a 401K Loan to Stop Foreclosure
Written by: Daniel Lamaute |
Distributed: 2008-02-11 |
Word Count: 465 |
Page Views: 5588
| Votes: 14 |
Rating: 2.29
A bankruptcy or foreclosure can cripple one's ability to obtain
decent credit for many years. In addition, some employers and
landlords won't hire or rent to a candidate with terrible credit
history. Thus, it is a good idea to discuss all options with a
financial planner before ending in bankruptcy or foreclosure.
Why Over 3,000 US Companies Have Chosen the Frankfurt Stock Exchange to Go Public
Written by: Ron Crowe |
Distributed: 2008-07-31 |
Word Count: 786 |
Page Views: 4008
| Votes: 13 |
Rating: 2.38
The Frankfurt Stock Exchange, one of the world's largest trading
centers for securities, has over 3,000 United States companies
listed. North American and other foreign companies are choosing
Europe, over the United States, to go public because of the
punishing Sarbanes Oxley Act introduced in the United States in
2002.
A Better Way To Sell A Structured Settlement - Via Auction
Written by: Clayton Frantz |
Distributed: 2007-11-30 |
Word Count: 1342 |
Page Views: 3805
| Votes: 8 |
Rating: 2.75
Structured settlements were introduced in Canada and the United
States in the 1970's. They were introduced as an alternative to
lump sum payments, common in insurance settlements and lottery
winnings. In the decades since, they have also been accepted as
legal financial instruments in England and Australia. In a
nutshell, a structured settlement by legal definition is a
statutory agreement to pay a specified sum of money over a period
of time, on a payment system.
Advantages and Disadvantages of Individual and Group Health Insurance
Written by: Kevin Kielty |
Distributed: 2009-04-01 |
Word Count: 639 |
Page Views: 2878
| Votes: 9 |
Rating: 2.78
The cost of individual and group health insurance coverage varies
greatly as does the type of coverage they both offer. Making the
switch can bring some surprises.
How to Hide Assets
Written by: Rocco Beatrice |
Distributed: 2007-01-19 |
Word Count: 507 |
Page Views: 2711
| Votes: 6 |
Rating: 1.00
How to hide your assets by repositioning your assets through an
irrevocable trust with an independent trustee.
The Good, the Bad, and the Ugly: Why Your Broker May Not Be Recommending The Most Competitive Annuity
Written by: Tom Hamlin |
Distributed: 2006-05-12 |
Word Count: 1036 |
Page Views: 2605
| Votes: 10 |
Rating: 2.90
There are over two thousand life insurance companies offering over fifteen thousand different annuities, and they run the gamut from horrific (I wouldn't offer it to an enemy) to outstanding...
Identity Theft: The New Threat to Your Credit
Written by: Josh Pike |
Distributed: 2006-08-24 |
Word Count: 363 |
Page Views: 2456
| Votes: 8 |
Rating: 4.00
When we think of thieves, images of burglars creeping into homes
and apartments come to mind. However, there are new thieves that
can take much more than your money or possessions. If your
personal information falls into the hands of an identity thief,
your credit and finances can be ruined.
Micro Lending: Find Your Voice And Inspire Others To Find Theirs
Written by: Robert Thornton |
Distributed: 2008-04-23 |
Word Count: 748 |
Page Views: 2436
| Votes: 7 |
Rating: 2.57
Many, many thousands of people in the third world have achieved
economic independence through the pioneering work of
internationally revered Nobel prizewinner Muhammad Yunus. As the
founder of the Grameen Bank, the world's first lending
institution to focus solely on providing unsecured start-up
capital for the working poor, Professor Yunus has gained
world-wide recognition and a slew of awards for his
extraordinarily effective efforts.
9 Questions To Answer Before You Prepay Your Home Mortgage
Written by: Frank Oakerson |
Distributed: 2006-08-02 |
Word Count: 1257 |
Page Views: 2406
| Votes: 12 |
Rating: 2.25
We are all different. At different times in our lives we have
different goals and needs. You can ask different experts in
financial planning, Texas mortgage brokers, and your banker
"should I prepay on my home mortgage?" and you will get answers
from "that is the greatest idea" to "that will be the worst
financial mistake you will ever make". So what is a person to
do? Let us look at 9 things you need to consider and have
answered before you "prepay your home mortgage".
Protecting Assets from Nursing Home Costs
Written by: Rocco Beatrice |
Distributed: 2007-01-24 |
Word Count: 470 |
Page Views: 2337
| Votes: 9 |
Rating: 2.44
About protecting senior/elder assets before entering nursing
home. Planning for your retirement by reducing your nursing home
costs has to be done early and definitively 5 years before you
plan to get sick. If offering is a taxable gift then taxes are
paid on the gift by the transferor; oppositely, the receiver
obtains the gift tax-free.
Highest Ranked "Finance" Articles
Identity Theft: The New Threat to Your Credit
Written by: Josh Pike |
Distributed: 2006-08-24 |
Word Count: 363 |
Page Views: 2456
| Votes: 8 |
Rating: 4.00
When we think of thieves, images of burglars creeping into homes
and apartments come to mind. However, there are new thieves that
can take much more than your money or possessions. If your
personal information falls into the hands of an identity thief,
your credit and finances can be ruined.
In Fear of Retirement
Written by: Daniel Lamaute |
Distributed: 2008-05-08 |
Word Count: 646 |
Page Views: 1285
| Votes: 7 |
Rating: 3.86
Many baby boomers are staring at retirement like a deer caught on
oncoming headlights. They are not sure what to do or what else to
do. They fear that whatever they have in savings just might not
be enough. Less than 1 out of 5 workers felt very confident about
having enough money for a comfortable retirement, according to
the April 2008, EBRI Retirement Confidence Survey. And with good
reasons, inflation is zooming at the same time that asset values
are flagging.
A Recipe for Good Credit
Written by: Josh Pike |
Distributed: 2006-08-17 |
Word Count: 369 |
Page Views: 1315
| Votes: 7 |
Rating: 3.57
If your credit is not as good as you want it to be, take action
now! It's easier than you think to improve your credit.
Why Should I Invest In Mutual Funds?
Written by: Eric Krammer |
Distributed: 2008-01-29 |
Word Count: 470 |
Page Views: 1337
| Votes: 6 |
Rating: 3.50
Hoping that the lottery will make you rich is as unreasonable.
However, mutual funds have proven that they are a good investment
tool that has been successfully used by many, which has resulted
in accumulation of a real fortune.
Equipment Financing and The Five Cs of Credit Evaluation
Written by: Sean Marten |
Distributed: 2007-10-17 |
Word Count: 698 |
Page Views: 1362
| Votes: 6 |
Rating: 3.50
Equipment financing lenders, as well as banks, use the Five Cs to
evaluate loan applications: Character, Credit, Cash Flow,
Capacity and Collateral. However, while banks look at
small-to-medium size companies from a Fortune 500 perspective,
equipment financing companies see applicants from a small
business perspective, which highlights a sixth C: Common Sense.
Reverse Mortgage Costs Are Not Too High
Written by: N. Sioris |
Distributed: 2008-07-29 |
Word Count: 1120 |
Page Views: 1072
| Votes: 6 |
Rating: 3.50
Reverse mortgage costs are repeatedly cited as one of the main
reasons for seniors not to get a reverse mortgage loan. However,
the same folks that harp on costs as being a reason not to use
this financial resource rarely offer a less expensive option or
an alternate proposal. Don't fall into the trap of listening to
the negative hype without doing your own research. Find out what
the true costs are and whether they are justified or not. Compare
the cost of a reverse mortgage to the cost of selling your home,
downsizing or moving into assisted living. Pull back the curtain
and take a good look, then make your own determination. Don't
base your decision on an uninformed friend, relative or media
reporter.
Taking Advantage of the Stock Market
Written by: Irene A. Majchrzak |
Distributed: 2009-07-09 |
Word Count: 738 |
Page Views: 1007
| Votes: 8 |
Rating: 3.50
Is the market rebounding? The Dow, leveling out each week because
it gets a rise in the market one day and a pullback the next day,
comes from investors' taking their profits. This will probably
continue for a year or so until the really large investors such
as Hedge Fund Managers, Institutional Investors like Mutual Fund
and 401(k) managers start purchasing the really great stocks at
lower prices for the longer term. You may have questions... This
article will show you how you can take advantage of the current
stock market conditions...
Medicaid Asset Protection
Written by: Rocco Beatrice |
Distributed: 2007-01-23 |
Word Count: 646 |
Page Views: 1427
| Votes: 7 |
Rating: 3.43
Learn how to include senior Medicaid asset protection as part of
your senior tax planning strategies. What are the tax
implications of Medicaid and why it needs to be planned
carefully? About seniors Medicaid asset protection as part of the
senior tax planning strategies. Explains the new 5-year look back
provisions for seniors to qualify for Medicare assistance into
nursing home program.
How to Invest in a Rough Economy: Investment Advice from the Experts
Written by: Sarah Simmons |
Distributed: 2009-07-08 |
Word Count: 692 |
Page Views: 865
| Votes: 8 |
Rating: 3.38
The stock market crash of 2008 lost many investors a lot of
money, and had many other investors bailing out of stocks for the
safety of savings and checking accounts, treasury bills and gold.
However, it is still possible to invest - and yes, even make
money - during the current rocky economy.
Section 179 - 4th Qtr Tax Saving Strategy for Small Business
Written by: Sean Marten |
Distributed: 2007-12-05 |
Word Count: 345 |
Page Views: 2050
| Votes: 6 |
Rating: 3.33
Use the power of available deductions to boost your business's
bottom line in 2007. Purchase new or "new to you" used business
equipment now. Then place it in service by December 31st to
realize exceptional tax savings.
|
|
|
Article Reprint Rights
|

This work is licensed under a
Creative Commons License
You are not required to show the creative commons license notice when you reprint this work.
|
|
Article Statistics
|
Word Count: 867
Total Views: 1115
Views This Month: 15
Views Last Month: 14
Article Rating: 2.70 of 5
Votes Cast: 10
Author Overall Stats:
Times Viewed Overall: 2320
Author Rating: 2.35 of 5
Votes Cast Overall: 17
More Articles By Author:
Articles On This Website
Article Title Search:
Widow Search
Right Blinker
Google
Yahoo!
Zuula
Bing
Cuil
Last Distribution Date:
2006-06-21 14:00:00
|
|
|