new broker report. buy recommendation, page-9

Good - listen to the ANALysts and in the end you'll either be rich if they are right or poor if they are not. The reports is counting chickens before they hatch!!!

So lets get this straight. I look at a company and how much free cash they are going to generate.

How much cash has PSA generated and still has on the books?

How many BCF have they produced and how many dollars are still on the balance sheet?

All they have done so far is be a treadmill:

produce gas, sell gas, pay bills, find more gas, SELL MORE SHARES, dilute the owners, drill some dry holes.....

What they have FAILED to do is produce cash, keep it on the books, and NOT dilute the owners.

So, say PSA made $25 million without the charges.

They sold what 8BCF and they made $25 million without the charges. Current USA GAS reserves are 30 BCF.

Take that 30 BCF divide by 8 BCF and times that $25 million that is what you have left AFTER they sell the reserves...that isn't even $100 million bucks.

That $100 million plus current cash and projected cash flow for 2007 which is all (IMO) going to be used up, is supporting a current market cap of over $A300 million and IMO that is too much.

How to value the China reserves as it is heavy oil and the price??????

The costs are going to be higher than they estimate by the time the project ever gets done. It has happened to every recent project around the world and China will be no different.

When the estimates come out don't be surprised!