Changing ponies.....
Sold CNE.to today and switched over to IAE.to. I like CNE but like IAE better. Both have benefited from recent mergers that will boost production and future prospects. IAE has more cashflow coming sooner. IAE reported .11 cashflow for Q1 but merged 4/19 with Valiant. Combined proforma cashflow would have been .31. Company is forecasting 1.20 cashflow for 2013 versus current share price of 1.87. 2014 cashflow is forecast at $2.10 due to the startup of the Stella field in the North Sea. Market is a little skeptical of the startup since capex is significant at 350million and the North Sea is a rough place to work. But even at 1.20/share, cashflow multiple is ridiculously low. Very high netbacks at $80/bbl due to high prices for Brent as well as UK ngas.
IAE will have 500 million in debt after Stella but it will only take 2.5 years to payoff.
CNE has the potential for shale oil in Colombia but IAE has more potential near term and current cashflow multiple is way too low. Expect IAE to outperform when market sees combined company financials in Q2.
Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
