screamingeagle,
Is this in one of the PR's. I have not seen it as I am reviewing some PR's now and have not read all of them at present.
Lets go with your figures for argument sake.
$1,055,000 after expenses X 12 months would be $12,660,000 net income per year.
43,971,504 O/S with 20,000,000 million tightly held per their web site. So that would mean approximately 23,971,504 in the float.
Share price as of close of business Friday at .075 give us a Market Cap presently of $3,297,862. The market cap is 3.83 times (less) than the projected yearly revenues.
Taking your figures of $12,660,000 net income per year divided by the present shares of 43,971,504 this would give the company Earnings per share (EPS) of .2879 or .29 rounded.
If you took this times a P/E (Price to earnings) multiple of 10 it would be $2.90 per share or times 20 P/E $5.80 per share.
Now all the above numbers are wonderful when a person buys a stock at .075 or below and dollars start ringing up in their head. Some things to think about and correct my figures based on eagle's post blockman or anyone else if I am in error.
1. When will these revenues be changed from projected conservative numbers to real numbers?
2. Will these wells be productive based on the management team in place and their expertise or will they prove to not be as productive as projected?
3. How long before the market values the company stock price wise where it should be based on forward looking projections?
4. What is the downside other than projections becoming either less than expected and or dry holes? Will expenses exceed or be controlled by management?
5. How much will private placement cost dilution wise to the share price and O/S amount to get the company where it needs to be to meet these projected conservative production revenues? Private placement comments are on the web site.
Just some thoughts and cursory evaluation questions that I imagine most people would ask on this company with the data I have taken from the web site presently.
Not all questions can be answered obviously like what the stock market will value the companie's stock forward looking at any given time.
Just doing some DD as I wait for Monday but it does look promising at these prices based on present share structure and Projected production revenues.
Thanks eagle.
Brent
