Is Titan Energy the next Maverick Drilling and Exploration? By Motley Fool Staff - Thursday, April 5th, 2012
Email Maverick Drilling and Exploration (ASX: MAD) have been on a hot streak, putting it mildly. The shares have soared over 500 per cent in 2012 alone, making them the very best performer on the whole ASX.
Motley Fool readers will know we first recommended the shares back in August 2011, saying they still looked attractive in January this year, before all the excitement saw Maverick shares take off into the stratosphere.
Source: Google Finance
It’s natural for investors to look for “the next Maverick”.
Some have suggested Titan Energy (ASX: TTE) might be one such stock, saying apparently this penny stock has won a contract to drill an area for oil. The reason people might be excited is that they won the deal over Maverick Drilling and it is in their area.
Unfortunately for the ‘get rich quick’ brigade, investing is never that easy.
We haven’t looked at Titan Energy in detail, but at first blush to appears they are trying to ride on Maverick’s coat-tails, which is never a great strategy.
Before investing in Titan, you should consider:
Whether they have the deep local experience and drilling expertise that Maverick does. Where it is going to get funds for its drilling program. Was it sensible to be the highest bidder? Maverick is more likely to know the field and what it is worth. Maverick also has a very low cost drilling ability, so will Titan be able to profit based on the deal they struck. If you are looking quality ASX investing ideas, look no further than “The Motley Fool’s Top Stock for 2012.” In this free report, Investment Analyst Dean Morel names his top pick for 2012…and beyond. Click here now to find out the name of this small but growing telecommunications company. But hurry – the report is free for only a limited period of time.
More reading
How smart ASX sharemarket investors can beat fearful fund managers House prices soft: More to come The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691).
The Coming 2012 Market Crash
The Australian Financial Review warns sharemarkets are in for "...another rocky ride in 2012." But for all the warnings in the financial press and on TV, no one is telling you the greatest threat to your wealth right now. A new report could save you hours of heartache, and thousands of dollars. Get it FREE for a limited time. Enter your email address
GEV Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
