The Stock Prophet's Buried Treasures

[sweet crude]

FNRC - crazy undervalued (.30 -> 2.00)

got this blast today...do the math

Ludlow Capital Issues Research Opinion on Natural Gas Company 1st NRG Corp (FNRC)
Last Updated: September 7, 2010 - 10:30am EST

(NEW YORK)--Ludlow Capital issued a research alert on 1st NRG Corp. (OTC:FNRC), a natural gas exploration and development company, with a 'speculative' valuation target of $2.00 to $3.00 per share.

Valuation Target

With around $3.90 in proven reserves, $7.94 in potential reserves, monthly income from fees of $24,420, and only around 5 million shares issued and outstanding, it would be fairly conservative to justify a $2.00 to $3.00 valuation price target on FNRC. Even based on the numbers below, the Company would still only have a market cap of $10 to $15 million, which is still less then their total proven reserves of $19.5 million. This formula does not take into account value of potential reserves, income from fees, future acquisitions, or potential forward splits or up listing to AMEX for the company.

Share Structure

As of September 7, 2010, the Company had around 4.2 million shares issued and outstanding, with around 2.8 million of that in the public float. At a price of $0.30 the company has a market capitalization of $1.2 million.

Proven Reserves

On the two projects under development with FNRC, the total 'potential' reserves are 5.8 BcF.

Natural Gas at $4.00
Minus Acquisition and Development Costs: $0.63
---------------------
Margin to Company: $3.37

Based on natural gas at $4.00, minus acquisition and development costs, total proven' reserves on 5.8 BcF would equate to $19.5 million potential reserves.

($19.5 million / 5 million shares outstanding = $3.90 per share)

http://www.wallstreetnewscast.com/news/2010/september/fnrc.html

got to free up more funds to increase position. Volume still low across the board, but like these low float value plays.