BruceyFurther to what SP has pointed out, I don't think I am...

Brucey

Further to what SP has pointed out, I don't think I am dreaming but I respect your right to question it, you would be a fool if you didn't. The fact that people point things out or make claims and are then questioned is what makes HC great. I have made some good gains from other investors pointing out value in co's when it is not reflected in the current share price. Apart from what has already said:

* 5 brokers recommend them as a moderate or strong buy that I know of with no holds or sells.
* Conservative 2007 EPS estimate of 17c, apply your own PE but even a pessamistic 8 makes them value now with limited downside
* World class targets in Texas, Yemen, Perth & Canning basins being drilled from now and over the coming months

Given the mixture of existing earnings and cash and an extremely exciting ~20 or so drill holes that are going down, a starting PE of 10, ie $1.70, I would argue would be reasonable right now let alone if they make a couple of commecial strikes which is quite probable out of 20 wells.


I don't want knock other individual stocks or some of the wild valuations based on hot air in far away places but it is a fact that many of them will never actually find commercial resources let alone mine them and create meaningfull revenue. Even if they find something in some of these locations they have to raise considerable amounts of money and production is years away. At least Arc is producing now and has an excellent chance of growing it's resource base and has the financial muscle and is close enough to existing infrastructure to enable fast track development without putting it's hand out. I'm happy to accumulate and hold, with expectations a 6 month return of 30 to 50% minimum. Time will tell.

DYOR