Mesa Energy Holdings, Inc. (fka MSEH)

[cleverrox]

Contingent on the uplisting happening as planned - MSEH should be a good buy at these prices.

Assuming AOIL has 54M shares outstanding and AOIL will earn $4M a year the EPS would be $0.08. As a NYSE stock we should get a minimum P/E of 6 or $0.48.

If they drill a successful well or two I think BOTH the EPS will go up AND the P/E ratio will go up.

PE 6 = $0.48 * 0.4 = $0.192
PE 8 = $0.64 * 0.4 = $0.256
PE 10 = $0.10 * 0.4 = $0.32

I find the 38% dilution (minus AOIL assets) annoying but the AMEX uplisting should make up for it when you consider MSEH trades at a P/E of 2-3 today.