Replies to post #34219 on Worthington Energy, Inc. (fka WGASQ)

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this is the only way i know of to get the growth potential and revenue potential across. "net profit", in a conventional sense, assumes all debt has been paid off.

as a small company, with financing for our projects, we will still have debt on the books, and will swing to a profit later as the oil revenues catch up and erase it from the balance sheet.

how long might that take? a year, or 18 months? hard to say. but almost all companies carry debt on the books and it doesn't affect how the market views the pps, as long as the top line growth is good and expenses are kept low.

here's one example of that, MHR:

http://finance.yahoo.com/q/ks?s=MHR+Key+Statistics

$684M in debt, $4 price per share.

there are other valuation models that can be used, like discounted cash flow (DCF) using EBITDA, etc. they may be more accurate, but it's not what most of us can visualize.

my calcs in this post put forth what imo the pps would be when the debt was gone, but also ignored any tendency the market has to reward that and focus on future acquisitions, etc. so i think all in all it's pretty close.