From Money Pit To Money Maker
“I skate to where the puck is going to be, not where it has been.” — Wayne Gretzky
A company I’ve been closely following for many years is in the middle of a major inflection.
AI data center demand is boosting the prospects for a major project that has been draining cash and is finally set to begin operations. And a second major project is starting to ramp, which could nearly double the company’s production by the end of the decade while significantly expanding its margins.
Meanwhile, the company trades below the value of its existing operations, meaning that I effectively get both of these company changing developments for free.
A saying by Wayne Gretzky that has become popular in investing circles is that to be successful, you need to “skate to where the puck is going to be, not where it has been.”
In other words, the best investments come from anticipating where value is moving before the market fully recognizes it. I believe this company is a perfect example of such an opportunity.
The value proposition is now so strong that I wouldn’t be surprised to see a premium buyout, which could limit some of the long-term upside, but would deliver a gain for shareholders from current levels. This just happened with another Canadian small cap oil and gas producer that I owned and had hoped to write about on Bison Insights, at a 45% premium including spin-off value.
