GBA Presents: THE BARE ESSENTIALS

Cheap Stocks to Buy, No. 5: A New Oil Leader

Stock No. 5, Screening for Fastest Growing Earnings Per Share: Evolution Petroleum (EPM) (99 Composite, 97 RS). The Houston-based developer of oil and gas in Texas and Oklahoma finished the eighth week of building the right side of its own deep cup pattern. Shares then broke out past a 6.84 buy point on Feb. 14.

Keep in mind that a handle also formed on the current cup base; 6.26 emerged as a lower entry. On Feb. 11, shares surged 8% and moved out of the 5% buy range from this lower buy point.

A New Buy Point?
A new follow-on entry point has emerged, however, as the stock tries to rebound off the 10-week moving average, now at 6.86.

For rebounds off the 10-week line, IBD's general stance is that it's buyable until it rises 10% above the moving average. Yet, to reduce downside risk, these follow-on purchases work best as close to the intermediate-term support level as possible.

Evolution Petroleum, with a $242 million market value, falls easily within the small-cap end of the stock market. It has 33.7 million shares outstanding, a float — or freely traded shares — of 30.7 million, and an average daily volume of 237,000 shares.

Evolution replaced United Microelectronics (UMC), which had held a spot on this column for quite a long time. United Micro crashed in the final week of January, down 14% in the heaviest volume in at least five years. The stock also took out its 200-day moving average, another key sell signal.

The Composite Rating in EPM is outstanding at 99. A Relative Strength Rating of 98 rocks.

Evolution has seen its SMR Rating rise to B on a scale of A to E. The SMR measures sales, margins and return on equity. However, after a long dry spell of growth, the top line jumped 309% vs. year-ago levels in the second quarter of 2021 and surged 237% in Q3 2021.

The micro cap posted solid earnings in four of the past five quarters.

Wall Street sees Evolution's earnings surging to 92 cents a share in the fiscal year ending in June this year, up from 6 cents in FY 2021.
 
Array to supply advanced tracker technology for solar storage project in US 08:26 ARRY Array Technologies announced it has entered into an agreement to supply nearly 1GW of DuraTrack HZ v3 single-axis solar trackers for the Gemini solar project. The project will store over 1.4 GWh of solar power and is estimated to be worth more than $1B. Kiewit Power Constructors is serving as the engineering, procurement and construction firm on the project. "As solar energy accounts for an increasing portion of the world's electricity supply, energy storage will play a crucial role in optimizing renewables and ensuring power is available during periods of peak demand," said Travis Rose, Chief Revenue Officer at Array Technologies. "Project Gemini is historic for its size and scale, and we are well-positioned to optimize it for maximum energy generation while limiting installation time, LCOE and maintenance requirements." Array's trackers are scheduled to begin deliveries in Q2 of 2022 with project completion planned for the end of 2023. The project site will be located on Bureau of Land Management land in Overton, NV, 30 miles Northeast of Las Vegas, and will supply power to Nevada Energy, a public utility which generates, transmits, and distributes electric service in northern and southern Nevada.
 
Gores Guggenheim


Polestar CEO Thomas Ingenlath recently discussed the company’s plans with Automotive News. So naturally, the CEO had a lot to say on the subject. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way.

842a0e869d078dad8a065c2ec2d34bbc

A close up of a Polestar vehicle in front of a company sign.
Source: Jeppe Gustafsson / Shutterstock.com

Ingenlath’s comments in Automotive News laid out Polestar’s three-pronged production plan for China, South Carolina and Europe. However, it was what he said Polestar is and isn’t that caught my attention.

“The aim of the Polestar range is to be sportier and to have a stronger focus on the driver. Even if it’s an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. It will also have a more daring design,” InsideEVs reported Ingenlath’s comments.

Sure, it’s excellent that Polestar plans to be sportier, more focused on the driving experience, than it does on being a luxury ride, but these particular words didn’t move me. However, what he said next did.

“A Polestar will be more progressive and avant-garde; therefore, it will not be loved by everybody, but it will address its fans,” Ingenlath stated.

The CEO came out and said Polestar wasn’t going to be Volvo (OTCMKTS:VLVLY) or some other brand looking for mass appeal. Instead, it would be a niche producer of EVs. In other words, he’s saying if you buy a Polestar, you’ll be getting something unique and special.

I’ve learned in recent years that businesses operating in the middle have less chance of success. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. Anywhere in between makes it harder to gain customer loyalty.

Ingenlath wants customers that will be loyal to the Polestar brand. The higher the price point, the easier it is to pull off.

Polestar and GGPI Stock
As I stated in January, I think GGPI stock — soon to be PSNY once the merger is completed — is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025.
 
GUMMY -

Gores Guggenheim, Inc. (GGPI)
NasdaqCM - NasdaqCM Real Time Price.
11.46+0.09 (+0.79%)
At close: April 1 04:00PM EDT
12.38 +0.92 (+8.03%)<-----------------
Pre-Market: 8:52AM EDT
 
stonedinvestor said:
Gores Guggenheim


Polestar CEO Thomas Ingenlath recently discussed the company’s plans with Automotive News. So naturally, the CEO had a lot to say on the subject. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way.

842a0e869d078dad8a065c2ec2d34bbc

A close up of a Polestar vehicle in front of a company sign.
Source: Jeppe Gustafsson / Shutterstock.com

Ingenlath’s comments in Automotive News laid out Polestar’s three-pronged production plan for China, South Carolina and Europe. However, it was what he said Polestar is and isn’t that caught my attention.

“The aim of the Polestar range is to be sportier and to have a stronger focus on the driver. Even if it’s an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. It will also have a more daring design,” InsideEVs reported Ingenlath’s comments.

Sure, it’s excellent that Polestar plans to be sportier, more focused on the driving experience, than it does on being a luxury ride, but these particular words didn’t move me. However, what he said next did.

“A Polestar will be more progressive and avant-garde; therefore, it will not be loved by everybody, but it will address its fans,” Ingenlath stated.

The CEO came out and said Polestar wasn’t going to be Volvo (OTCMKTS:VLVLY) or some other brand looking for mass appeal. Instead, it would be a niche producer of EVs. In other words, he’s saying if you buy a Polestar, you’ll be getting something unique and special.

I’ve learned in recent years that businesses operating in the middle have less chance of success. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. Anywhere in between makes it harder to gain customer loyalty.

Ingenlath wants customers that will be loyal to the Polestar brand. The higher the price point, the easier it is to pull off.

Polestar and GGPI Stock
As I stated in January, I think GGPI stock — soon to be PSNY once the merger is completed — is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025.
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Nobody's gonna buy one of those pieces of junk Stoney. I thought we were focusing on companies that make money in this thread.
 
Dude they just sold a S load to Hertz!

STOCK OF THE DAY RED CAT! <----- Another GBA Exclussive!!!!

Red Cat Holdings, Inc. (RCAT)- Fly baby fly!
NasdaqCM - NasdaqCM Real Time Price.
1.9500-0.0700 (-3.47%)
At close: April 1 04:00PM EDT
2.3700 +0.4200 (+21.5385%)<------------------:wtf:
Pre-Market: 8:54AM EDT
 
A lot of what we look for in an energy play this Company has- We need to be in this name before the CC.


Evolution Petroleum Announces Closing of Acquisition of Natural Gas Assets in Wyoming's Jonah Field and Upcoming Investor Call
Mon, April 4, 2022, 6:50 AM
In this article:
EPM
+5.89%

HOUSTON, TX / ACCESSWIRE / April 4, 2022 / Evolution Petroleum (NYSE American:EPM) ("Evolution" or the "Company") announced today that its transaction to acquire non-operated natural gas assets in the Jonah Field in Sublette County, Wyoming (the "Transaction") from privately-owned Exaro Energy III, LLC ("Exaro") closed on April 1, 2022. The net purchase price for the Transaction was $26.2 million, including customary preliminary purchase price and closing adjustments, as well as exercised preferential rights, based on an effective date of February 1, 2022. The Company's management team plans to discuss its recent acquisitions on an investor call on Wednesday April 6, 2022.

Acquisition Highlights

  • Provides immediate accretive cash flow, product diversity, increased scale, and extended dividend support with minimal incremental overhead;

  • Increases pro forma net daily production by 37% to approximately 8,000 barrels of oil equivalent per day(1);

  • Evaluated solely on proved developed producing ("PDP") reserves based on forward prices substantially below current levels;

  • Adds approximately 38 billion cubic feet of natural gas equivalent of long-life PDP reserves(2);

  • Field has access to multiple attractive markets, including west to the Opal market hub and optionality to flow to eastern markets;

  • Operated since 2014 by Jonah Energy LLC ("Jonah Energy"), a top-tier, responsible, and established operator in the region; and

  • Transaction funded from cash on hand and $17 million of borrowings under the Company's existing senior credit facility.
The acquisition includes an average net working interest of 19.6% and an average net revenue interest of 14.9% in 595 producing wells and 956 net acres. Current estimated net daily production from the asset is approximately 10.8 million cubic feet of natural gas, 120 barrels of natural gas liquids, and 112 barrels of oil. With the incremental debt, the Company's ratio of debt to pro forma annualized Adjusted EBITDA(3) remains well below the targeted level of one times.

Management Comments

"We are pleased to successfully close on another accretive transaction - the acquisition of non-operated natural gas assets in the prolific and long-life Jonah Field in Wyoming," said Jason Brown, President and Chief Executive Officer. "The Company has a clear strategy based on evaluating and executing accretive transactions that meet stringent criteria while keeping debt levels at a conservative level. We remain focused on securing incremental long-life and low-decline reserves that generate strong cash flow, further supporting the long-term strategy of providing a meaningful return of capital to shareholders through a quarterly cash dividend program that has been in place for more than eight years. We are especially pleased to partner with Jonah Energy, a proven operator that is highly regarded."

Brown continued, "In 2022 Evolution has executed two strategic acquisitions that have substantially evolved its commodity product mix, expanded its asset footprint, strengthened future cash flow generation, and added inventory of low-risk development drilling. As a result, we have been able to restore our cash dividend back to the pre-pandemic level while substantially increasing free cash flow to rapidly pay down our modest amount of outstanding debt and fund development drilling of our proved undeveloped location inventory in the Williston Basin. We appreciate the continued support of shareholders as we integrate these properties into the Company and extend dividend support for the next decade. Going forward, our priorities will be the evaluation and execution on additional targeted transactions that complement our portfolio, as well as conservative development of existing assets that further support meaningful ongoing cash return of capital to shareholders."

Presentation and Discussion

Evolution will host an investor call on Wednesday April 6, 2022 at 2 p.m. Eastern to discuss its recent acquisitions in both the Jonah Field and the Williston Basin and answer any questions.

Date: Wednesday April 6, 2022
Time: 2:00 p.m. Eastern (1:00 p.m. Central)
 
unconventional wisdom said:
Savant! i remembered this post today after reading that Musk took a stake in twtr. The question is, has he/will he also take a stake in DWAC?
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Why would he views are down to 8,000 a day.

Trump rallies are nearly empty.

Other Republicans have started to talk back and roast him.

Van is shorting this company to $5
 
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