IPOOF - InPlay Oil (IPOOF)(IPO:CA) - InPlay was the third best performer in the OTCQX 50 2022 list

IPOOF ranks high in the annual OTCQX survey. The survey ranks over 11,000 stocks based on an equal weight of stock performance and average daily dollar volume growth in 2021. The shares of IPOOF, which rose 254% in 2021, continued their climb so far in 2022 reaching a peak of $2.69 or 937% above the starting point for 2021. The shares have fallen a bit in the last few days along with the overall market, but still remain near peak levels. Average daily volumes, which were below 5,000 shares at the beginning of 2021 have crossed 100,000 several of the last trading days.There are many reasons for the share strength. Certainly higher oil and gas prices have helped the shares. However, we believe the successful drilling of Cardium wells in the Pembina play was the primary reason for the share strength as management raised production and sash flow guidance several times. We are especially excited about a tuck-in acquisition that the company made in the fall that expands the play, as well as the company's recent decision to expand drilling operations in 2022. As we indicated in a note at the time of closing, we believe the acquisition has the potential to move InPlay from a junior explorer to a mid-size production company, a belief being born out by the stocks higher price and trading activity.We believe there is more room for the stock to run. As the company reported favorable drilling and production results, we raised our estimates and price target several. In fact, we raised our PO three times in 2021 to our current level of $3.00 (C$4.00 for IPO on the TSX). Our current PO is twice our 2021 starting PO. While the InPlay story is becoming better known and future increases may become more difficult, we would not rule out raising our PO further should results continue to improve. Even without further improvement, we would note that our current PO is roughly 25% above the current stock price. Read More >>