Saratoga Resources, Inc. (fka SARA)

[Swick984]

SARA reported Q4 earnings that were the strongest and highest in the last 3-4 years with EBITDAX at its highest level and discretionary cash flow at $0.31 per share. Annualized, that discretionary cash flow of $1.24 per share, which means SARA is trading at less than 1.9x cash flow! I'm expecting that to grow through 2013 as they place production from new wells in and make the low-cost improvements at Main Pass 25 and through the tubing recompletions. The NAV is over $9.00 per share! SARA is trading at a massive discount to typical multiples.

Q4 also would likely have shown a profit had it not been for the write-down in value due to lower pricing in its reserve valuation. Q1 will likely show a return to profitability and will hopefully usher in a new trend in share price, up...