if you are confused, confounded or just alarmed at the SP of MPO...

if you are confused, confounded or just alarmed at the SP of MPO relative to its cert reserves - then I suggest you do not read any further !

Below is a page from the WCL presentation.
I posted it on the MPO thread, as being a l/t MPO s/h, the first thing I noticed from the chart was the level of MPO valued compared to the others.

One can observe that the MPO's EV/2P $/GJ is just 1c - yes thats ONE CENT per GJ !

Before you slit your wrists, my take on this is that the market is subscribing value of MPO 2P reserves at 1c /gj - and imho, this can ONLY be an anomaly!?

And this anomaly only arises BECAUSE MPO is in the enviable position of having a heap of cash and liquid securities (Legacy shares)

So to arrive at the above EV figures, one gets the market cap then deducts cash. The resulting figure is supposed to represent MPO production/hard assets.

SO MPO EV is "penalised" because of its high cash position.

But I guess what it DOES illustrate so graphically, is what a bargain MPO shares now must be!

When the EV/2P is only 1c/gj - the only way is UP !!

cheers