One company that’s been moving the right way of late is

Novus Energy. They just reported third-quarter results that

were generally neutral. Production was a bit softer than

forecast, but nevertheless was expected, given its pace of

drilling YTD. We’re told the most significant news was that

its Board has created a special committee focused on

“surfacing value”; code for the Street believes the company

is "for sale".

Novus remains one of Canaccord’s “Focus List” stock

pick for its material growth profile, pure-play Viking status,

take-out potential, and what analyst Steve Toth feels is an

attractive valuation. His target is based on 1.0x multiple to

NAV, reflecting a 4.3x 2013E EV/DACF multiple. In this market,

we would gladly take that. Currently, Novus trades at

3.0x EV/DACF and $48,750 EV/boepd on Canaccord’s 2013

estimates, an average discount of ~34% to its light oil weighted peers.