OK. Can't help myself in posting my thoughts following the letter from the CEO. This is total speculation on my part, but follows logic and I'll have fun doing this.
Keith made it pretty clear that Hemi is currently profitable. Debt free. My recent conversations with him concluded that they are selling enough oil to pay bills and tanking additional oil to sell when oil prices go up. OK, great for an emerging O&G company. Based on assets listed alone, the stock is currently undervalued.
Now the fun part. Math. I'll be conservative and not include ANY gas or probable reserves. Obviously this is just an uneducated estimate, but as we sit at .008 it shows just how undervalued the stock is.
2.15m proven from prior report
2.65m recoverable on Bennet
4.8m total
at $20 each / 87m OS
= $1.10 per share
Now, I fully expect some to argue this value and that is fine. However, it makes it very difficult to argue that .01, .05, .10, .20, or even .40 is unrealistic.
