Goldbear, using p/e ratio for a stock like Santos is misleading. Due to the massive capex required to build these projects, there is like $12-15/bbl of depreciation and amortisaiton ("d&a") that comes through the P&L when these projects start going into production, but has already been spent, which is why (provided the oil doesn't keep falling) these projects will spit out large chunks of cash for the next 30 years +. This is why you need to look at cashflows, not profit. Also, the current p/e ratio doesn't reflect PNG LNG and GLNG which should be very profitable and only reflected in earnings from 2016+.
I'd be happy to buy more at $8 if the oil prices stabilises at these levels!
Goldbear, using p/e ratio for a stock like Santos is misleading....
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