financial model - ndo - investment bank analyz, page-10

Hello Olly8888,

I made a macro call that Oil was going to rise in price over the next couple of years. I did a peer comparison across every single oil company on the ASX (see: selection below):



I then created discounted cash flow models of the companies that I believed offered the best value. I reviewed their annual reports, quarterly reports, company presentations and reviewed all market notices.

Note: I have not included exploration Oil and Gas companies nor Gas pure play companies. I think gas is oversupplied in Australia.

From this I then selected NDO.

I liked AWE initially because of their underlying financial metrics. However I feel uncomfortable about their current oil reserves and they are clearly overpriced compared to their peers.

I trade approximately 10 stocks in for my portfolio. I have a range of valuation metrics that I use as part of my stock selection process. My typical holding period is 3 months to 3 years.

Kind Regards,
Par15