Snup,
I was looking at your two stocks DNR and GTE. While both are about the same price and GTE has a cleaner
Balance sheet, I think the stock appreciation potential for DNR is very good and better than that of GTE as long
as oil is above $55/ bbl. The ratio of enterprise value to market cap to me tells me that DNR will generate more
Profit per share as long as oil pricing makes these companies money. In fact, if Denbury can pay down some
debt and improve the balance sheet , I believe we are looking 2 to 3 times today’s price.. At the current rate
It seems conservative to say they will earn more than 1.00 per share so with any increase in book value a
PE at the low range for oil producers would produce a much higher stock price. Thanks for touting GTE as
It is always better not to have all your eggs in one basket. I am long both stocks with much more in DNR and
I am long a few other small cap oil/energy players that I think will also appreciate from the recovery from distressed prices. Regards,
Steelman 3.
