you need to constantly come back to either an earnings model, how much this year, how much next year, and value somewhere in the middle,
alternatively, you can look as asset value, if the reserves stand a probable course of development, and when, or if there is a predator willing to buy it.
Remember, the market is impatient, and while a nice reserves report has given it a boost, bear in mind, what the months of silence of non-development progress will do.
That is why profits are being taken. The hard question. Has euphoria taken this beyond its reasonable forward earnings basis?
A look to the past performance of this companies production profile, merrits caution.
OEX Price at posting:
21.1¢ Sentiment: None Disclosure: Not Held
