Hi Lou,

I was very happy to see  your name on the Globe Investor website today.

My question is regarding Oilsands Quest (BQI). I have been watching this stock for a while and would appreciate your insight.

Thanks,
Linda, Halifax NS

Hi Linda,

Glad that we could reconnect through the new edition of globeinvestor.com.

Oilsands Quest Inc. (BQI AMEX) is staking its claim on a very large land position in  Saskatchewan  and is working to develop the oil sands potential of their land base.

Oilsands Quest has raised over $350 million since 2004 and has been drilling their properties to delineate the reservoirs. BQI has also been testing steam and water stimulation methods to best understand how to economically bring the bitumen to surface.

At this stage you have a company that is doing all the leg work needed to expand the oil sands potential in Saskatchewan and if successful benefit greatly from the effort.

The chart tells the tale of what happens when oil prices fall from their highs. High cost oil deposits get hurt. If your investment horizon is long term BQI could provide an opportunity. There seems to be some real assets here but it will take capital to bring them to market and higher oil prices to justify the investment.

The stock has been range bound since December of 2008 with resistance at $1.20 and support at $0.70. If you want to get involved with Oilsands Quest Inc. look to trade it in the range till there is evidence of a change, a break above $1.20 or a breach of $0.70.

Keep in mind that the company is a long way from actually producing a commerical molecule of oil and will require a lot of capital to actually accomplish that feat.

Happy Capitalism!