brokers report out today, page-15

"and didnt the past strategy that took them to $7 take the company under?"

No. The problem was they changed strategy and spunked all of their money on 3-4 large deepwater wells that produced nothing.

Also, with prices at $7 a unit, smaller discoveries of 5-10bcf are extremely economic. If the cost of finding these discoveriesis $1.40 per unit, then that looks highly profitable to me.

Also, and this is a big 'also', if you get a really cold snap for a while in the NH winter, PSA could make 'super profits' for 3-4 months which would really change their cash position quite markedly if it happened.

I read the BBY report closely, it is very detailed. Note that the biggest risk recently was the Vermillion wells done eariler in the year. Note that the return factor on the Main Pass and onshore wells is far less. Also note that the development costs of Main Pass (ie platforms etc) is minimal compared to the money they needed to spend on Vermillion development.

It basically spells out that Vermillion was the big winner for them, but market has not recognised this yet.

Still undervalued in my opinion, but also some strong upside potential. Remember the report valued them at $1.86 using US$5 as the gas price.