pymo dirt cheap, page-2

yeh ,very ,very cheap...

Here's why...consider this ... for the past 3 months PYM has traded below the 40 cent excercise price, as much as 10 cents below, but the oppies have been holding pretty firm at 10-13 cent all this time.... so theres been a 10 cent premium for the time value left to run till June 2008... obviously this reflected a smart entry into the stock without a big outlay upfront.

now that we've had confirmation of gas finds in the first holes of Raven and Turner Bayou with more news to come and at least another 15 wells being drilled before the expiry date of the oppies the shares are at 52 cents yet the oppies only at 15.5...

so basically that 10-13 cent time value premium has been taken away as the opps are now only reflecting fair value above the exercise price + 2-3 cents.....

Given there is still 6 months to run, 15 wells to drill, and proven success in the first wells has eliminated some of the "exploratory risk" it would seem fair that there should still be some decent time value attached... in fact given the drilling timetable over the next few months, and therefore greater chance of reserves increasing exponentially by June you would think the oppies should really be good value up to at least 20-23 cents at the moment.

the anticipated increase in earnings by 2nd quarter next year should see PYM shares trade above $1... so double from todays price, but that would mean the oppies should be at least 60 cents... so quadruple from today.... if thats the case you would think smart punters would be prepared to pay up to at least 20-25 cents immediately.

cheers to all the PYm long termers !! CU