Bontan Corporation Coverage Initiated By Investrend Research Provider Fundamental Research.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (Investrend Research Syndicate) Fundamental Research Corp analyst Amit Bandekar, B.E. (Petroleum Engineering), MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration has initiated coverage of Bontan Corporation Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : BNTNF) in a report dated September 14, 2005. A summary of the report follows below; the full 18-Page report is available free for a limited time at www.fundamentalresearchcorp.com and http://www.investrendresearch.com. The company has a 49% gross working interest in a gas exploration project on a 1300-acre block in eastern Calcasieu Parish, Louisiana Calcasieu Parish (French: Paroisse de Calcasieu) is a parish located in the U.S. state of Louisiana. The parish seat is Lake Charles. As of 2000, the population was 183,577. The Lake Charles Metropolitan Statistical Area consists of Calcasieu and Cameron parishes. . The analyst believes that there is strong potential upside in cash flows with the development (total of 3 wells) of the existing block. The report cites that management has proven its ability to make profitable business decisions. Earlier this year it disposed of its IPI (Intelligent Peripheral Interface) A high-speed hard disk interface used with minis and mainframes that transfers data in the 10 to 25 MBytes/sec range. IPI-2 and IPI-3 refer to differences in the command set that they execute. See hard disk. interest doubling its original investment in less than 2 years. From a macro point of view, the analyst believes that there is a durable and growing market for oil and natural gas in the United States. Bontan has a sound balance sheet with sufficient cash reserves to fund near term capital programs, and zero long term debt. This provides Bontan with the flexibility to raise additional capital. The analyst's BUY rating is based on his opinion that BNTNF is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. ; trading below NAV See navigation system and navigation bar. . The analyst estimates the fair value to be US$3.40. The analyst also notes three key risk factors including: BNTNF is in the exploratory and pre-development phase of operations; growth in future cash flows is dependent on success of the current exploratory well and subsequent wells. Also, the company is subject to exchange rate translation and commodity price risks. Lastly, management has limited experience in the oil and gas industry though mitigated by partnering with entities with extensive experience and by hiring consultants and geologists to conduct due diligence before entering into projects. Fundamental Research Corp. is a research provider to Investrend Research and a member of the FIRST Research Consortium which sets the standards and ethics for independent research agreed to by all members of the association. Fees of less than $25,000 have been paid by the subject company to FRC FRC abbr. functional residual capacity FRC see functional residual capacity. . FRC and Investrend Research take steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics Code of Ethics can refer to:
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