clark, a lot of time the sp will retract to the cr price. Add to that the general market selloff and we have 35c.
Meerkat nailed it, raising money at this time was crazy. It's "sell in May and go away" time now.
I'm not saying Hartley's clients are selling now but I am laughing at them for staging this even though it's personally painfull.
It may go lower, we may see 33c, if you believe in the fundamentals like I do, then you're getting a bargain. I'm happy to buy more at these levels because this is the way I see it
rough calc
- $25m pa net profit from 1 well - use a conservative PE of 5 - add a conservative $20m value for future success - approx 300m shares
25 x 5 = $125m + $20m = $145m
145/300 = 48c per share
These are my conservative estimates without including cash etc. With revenue likely to double by Xmas, you can argue my calc is very conservative but I like it that way to find stocks that have good growth prospects and I believe HOG is one of those.
Good luck with whatever you choose. I don't see there being any point of selling here unless you sold in the 40's prior to the Cr being announced, unless of course your living on baked beans like me and need the money.
HOG Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
