SHE 0.00% 1.0¢ stonehorse energy limited

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  1. 2,039 Posts.
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    Market assigning zero value to SHE current and future revenue streams

    Considering SHE market cap is near its current liquid asset value, then this implies that the market is applying no weight to SHE future growth or current and future revenue generation.

    Using a basic model..
    .
    Intrinsic value = Liquid assets + PEs * Earnings
    .
    where PEs is the mean price earning for SHE sector (currently 13.6)
    .
    The intrinsic value in theory should equal market cap ,.. but it does not,instead being near equal to Liquid assets .
    .
    The implies that the market is valuing ( PEs * Earnings ) as near enough zero, i.e. they have zero faith that SHE is delivering earnings or future earnings. Earnings are not subjective, so the market has assigned SHE A PE of near enough 0 instead of the sector 13.6.
    .
    Anyone who reads the announcements or follows SHE can see this is clearly not the case as SHE is delivering earnings and is in the process of opening a new well. Hence i believe the market us currently undervalued SHE by a huge amount.
    .
    If the market factors in he (PEs*Earnings) component then we will see a large up-rate.
    .
    What will it take to do that,
    .
    SHE completing successful drill in around 8 days.
    SHE reporting oil and gas found in the Certus well ?
    OR
    initial production rate of Certus O&G.
    .
    Or will we have to wait 2.5 years before dividends.
    .
    What would help if she completes the drilling or finds O&G then issues a market Sensitive Announcement, might that alert the market.
    .
    My personal non professional view is that the Market has substantially miss-priced SHE probably as SHE is so small that retail investors ignore SHE and SHE is to small to be worth the time of Large institutions with their preferences.
    .
    So thank you MR market for creating this lucrative opportunity for me.
    .
    Caveat:
    I am a amateur and these are my personal views..do your own research and form your own opinions .




 
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Last trade - 16.12pm 02/07/2024 (20 minute delay) ?
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