UTS Energy Stock
The Stock Market is in complete turmoil after Lehman Brothers Inc filed for bankruptcy and oppertunities are everywhere!
The one I picked out for a “TRADE” today is UTS Energy Corp (Ticket Symbol UTS.TO) at the price of 2.30$.
UTS Energy has a 20% interest in the famous Fort Hills oil sands project. The other big players are Petro-Canada Oil Sands Inc with a 60% stake and Teck Cominco Inc with also a 20% stake in the project. The Fort Hills oil sands project is 14,400 acres located just 90Km from Fort McMurray, Alberta and has estimated resource of 4 Billion barrels of oil.
In trading today UTS Energy fell more than 20% at one point on reports that they would have trouble coming up with 350$ Million dollars for the first stage of financing.
Reuters news quoted UTS excecutive Will Roach-
“Obviously it’s increased risk on the financing, given the financial turmoil,” Roach said in an interview. “Obviously the market is giving us some advice that they think it’s going to be more difficult.”
The stock has fallen from it’s summer high of around 7$ dollars and I wouldn’t recommend turning it into a long term investment until we hear more news on UTS’s financing and the price of oil pulls back a little more.
They say never try and catch a falling knife, I think I might go out on a limb for a “Small Trade”
UTS at 2.30$ Canadian (UTS.TO on the TSX)
Kelly Parks
www.wealthforinvestors.com
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