multi bagger in the making, page-6

Vayama

You make so many assumptions in your calculations its not funny.

- how do you arrive at a net profit margin of 35%
- as they have cash in bank and assuming they do make
money , dilution would probably only occur with
acquisitions which could generate more income and
impact on eps. You have conventiently diluted shares by
more than 40%.
- i think tax rate is 30% not 35% , also they wont be
paying tax for a while given they have carried forward
losses of $14M , if they get through all those losses
in a short time i think all BUR shareholders will be
happy because its equiv to about $45M of net profit.

Future EPS predictions and PEs are futile for these type of companies , it doesn't take into account volatile commodity prices , potential delays in production, one off costs, large unexpected increase in resources etc.

However i think AAs comments are very valid - small market cap , viable prospects & good revenue levels which could significantly increase . This to me compares a lot more favourably than some other small oil & gas players.