Replies to post #3406 on Value Microcaps Junior Energy

[gold80302]

TIV
Yes its a little disconcerting that the stock is dropping. The good news is the fundamentals justify a much higher price.

[farwest]

TIV - $100MM cash flow? No way. They only have 25% net production. At 2000 boed gross, they are finally cash flow positive.

If they get to 3000 boed by year end, their net production is around 750 boed.

Assuming $90 netbacks, that's $25MM/yr cash flow. Slap a very generous 4x multiple and you get a company worth $100MM market cap.

Their financials are a mess.

At current prices, TIV is grossly over valued.