Muppet "If it is so overvalued why is it not likely to trade there soon...?? "
I dont think it will trade under $1 anytime soon becuase their is too much hype on the stock and probably 75% of holders would not have a clue how to value the stock other than oil in the ground so they all think it's cheap.
This stock has a pretty simple model which is what attracted me. However the decline rates are too large and the size of the wells too small and it will just take too many years to produce enough oil to justify it's current price.
Clearly the new wells they drill will have to have much higher BOPD rates to justify the current share price.
The critical issue is BOPD. If this number was 500 per well then I would happlilly pay $3 a share but as it is less than 20 it is not worth the current price of $1.25
FDM Price at posting:
$1.25 Sentiment: None Disclosure: Not Held
