While one can hardly grizzle at a 10% rise, I prefer slow,...

While one can hardly grizzle at a 10% rise, I prefer slow, steady increments myself, rather than those showy, "shooting star" type rises. They're all very well for the day-traders looking for a quick buck, but I sometimes think they deter longer-term investors who assume - incorrectly - that the stock is the flirty, shallow type rather than the steady kind you can take home to meet mum and dad.

Given the SP action seen by most others in the junior oil sector lately, AMU has been like the virgin left blushing in the corner while her racier friends have burned up the dance floor. Once prospective suitors get a sniff of what she's worth relative to her tarted up peers, they'll line up to take her for a turn or two. The industry average for oil producers with a regular income stream is a PE of around 15 (more for the big, established producers like WPL, STO and ORG) whereas poor old AMU has a PE under 2 despite its quality, producing assets and rising production rates. With a market cap of just $72m, I wonder how many other oilers are producing 2,150 BOEPD.

For example, CVN is a quality junior producing around 4,000 BOEPD. That's twice as much daily production, but its market cap is $570m. - 8 times that of AMU. That's why I think AMU is seriously undervalued. I'm a huge CVN fan too, by the way, but I've been looking for similar stories that I feel the market has overlooked and AMU is the best of these I've seen.

At the moment that sentiment does not appear to be shared but if today's modest rise is followed by a surge in volume over coming days, it certainly won't take much to kick this one along as the sell side is pretty thin.

DYOR.

Gupper