OK Paul, can you point us to where you have stated the fundamentals of this company are not good? It would save us having to trawl through the thousands of emails on here. I, like Burner, would like to understand your reasons.
My take on it is as follows:
Over $50m (11c) in the bank and production now over 1500 BOPD and increasing. I estimate revenue of $9-11m per quarter versus costs of around $2.5-3.5m per quarter. Even if production stays flat (which is extremely conservative) that's a PE of 4-5 at current prices, after stripping out the cash. Seems extremely cheap for a company that has an excellent track record of increasing production. This is an extremely conservative way to value a company. If on the other hand you do an NPV type calculation like RBS Morgans has you get $1.01 just for the 1P 'fairway production', and $1.42 if you include the 2P numbers.
So a valuation of 80c-$1 is pretty conservative it seems.
FDM Price at posting:
43.0¢ Sentiment: LT Buy Disclosure: Held
