Under the Radar: Take Off to the Great White North

Been there, done that. The market could barely stifle a yawn at this week's 25 basis-point rate cut by the Federal Open Market Committee . But even in a slow, sleepy summer week like this one, a few nuggets of news and intelligence may have slipped under your radar, and they could make you money in the weeks and months ahead. Here's a look at what we found.

Anadarko Looking North?

Rumblings out of Calgary, Alberta, late in the week suggest Anadarko Petroleum (APC Quote) may be looking to expand its Canadian presence. Sources north of the border say that the Houston-based exploration-and-production company is scouting out a possible deal with Anderson Exploration (AXN Quote), a Calgary-based company with proven reserves of 664 million barrels of oil equivalent. Natural gas makes up 65% of its current production.

In recent presentations, Anadarko has hinted at its interest in getting larger and its attraction to Canada. According to one Canadian trader, Anderson is in Canada what Mitchell Energy (MND Quote) is in the U.S.: a top-tier natural gas company with solid, proven reserves. "If Mitchell is one of the last jewels in the U.S., Anderson fits that bill in Canada," he says. What drew Devon (DVN Quote) into acquiring Mitchell is likely pushing Anadarko toward Anderson.

Recent market reaction hints that Anderson is in play, as the stock has moved higher on heavy volume since Wednesday. "Something is happening; there is a lot of conviction in the market about Anderson," says Scott Walters, a trader at Toronto-based Research Capital. "We're hearing Anderson will sell if they can get $35 [Canadian] or better." At current exchange rates, that equals about $22.70 a share. Anderson closed at $18.04 Thursday.

Anderson in Play Rumors of a possible takeover might be fueling this stock.

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