MENU

Is Titan Energy the next Maverick Drilling and Exploration?

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

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 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!