maverick = no real future....lol..., page-16

the essense of my post was that the stock is overvalued given where it is in it's development cycle and that their is a good liklihood that as they slowly increase production that the share price does not improve.

Currently the market cap is 537M.

The first question I always ask is would I pay 537M now for this business and the answer I get is no.

Sure in 12 months time when they have proven that they can increase oil production then I might be prepared to pay 537M for the company.

Right now MAD has lots of oil in ground
Have their own drilling rigs
Currently have drilled 51 producers out of 56 wells.
BOPD is low per well averaging around 18 at this time
We have no knowledge on well life or decline rates
Will this company generate any free cash flow over the next 2 years or will they plough it all back into drilling more wells
Will they need a capital raising to speed up drilling.

So far I have been drowned out by true believers but little logic has been used to refute my position except you cant use PE. For the record I did not use current PE.