Pura Vida Energy poses an investment dilemma
Pura Vida Energy poses an investment dilemma. Deepwater oil and gas exploration is expensive with little discretion as to the timing of disproportionately large expenditures for a small company. It is logically the preserve of the largest companies with the deepest pockets. Results are a long time in coming and, for the small company, there is usually no middle ground between success and failure. Success can be transformational but possibly a mixed blessing for the small company if it precipitates a need for large amounts of capital. Pura Vida Energy is potentially among the best of the smaller companies in this space but a holding needs to be a part of a well diversified portfolio of explorers for all but the most risk friendly. The PorfolioDirect summary report for stocks rated in February 2014 can be downloaded from (VIEW LINK).
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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