August 16, 2005

SpeculatingStocks.com Stock Pick: CanArgo Energy Corporation (CNR)

Stock Price: $1.11 (long-term strong buy)

CanArgo is an independent oil and gas exploration and production company with its principal oil and gas operations currently located in the Republic of Georgia. The company acts as a holding company that carries out its activities through subsidiaries and associated companies.

CNR has been rebounding strongly after hitting $0.65 on July 22nd and is now about to break through resistance at $1.20. Energy stocks are still going strong especially the ones that are still undervalued or not necessarily overvalued.

The company currently has total assets of $130.7 million and total liabilities of only $20.5 million. There is over $18.8 million in cash on the balance sheet and stock holders equity of $110 million. Right now, there are 186 million shares in the float.

CNR hit $2.09 on March 3rd, we believe it is headed back there.

SpeculatingStocks.com Target Price: We expect CNR to break the $2.00 level within the next 2-4 months.