stockanalysis on neon ($1.09 valuation current, page-38

The general weakness in broker reports is that their valuations for junior oilers have two components. One being proven physical assets the other being the value of the unproven exploration portfolio. Nothing wrong with that as such but it has to taken in context of the overall market.

Unproven exploration assets get overly hyped in a bull market often exceeding broker values, switch to a tough world market like we are in now and you get the opposite. The market discounts unproven exploration assets harshly, even to zero. The market basically says well its great you have this prospective acreage but we will not attribute value to it until you've drilled it, flowed it and proven its commerciality.....then the dollars get added.

The worth of broker reports is in highlighting the various projects and giving them a ranking in terms of risk and value. Independent commentary on the projects, management, sovereign risk etc etc is also very important rather than just the prescribed price.