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.
BUR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
