Avion Gold Corp AVGCF

RE: RE: RE: RE: RE: RE: Low price

[AdamJT]

No one compares outside regions to other regions. Your comparison makes no sense. I can go down a number of reasons why CRK is valued where they are and you should know but, basically financing below market price followed by an acquisition that requires more debt financing are key to there low price. 

Here's the bigger kicker for Avion having a higher price. In FY 2011 we made .11 EPS versus CRK losing .12 per share. If you dig into it you will find many of the junior producers who are losing money are trading at lower valuations than companies who are actually making money. Avion is cashflow positive and is earning money which trumps a peer to peer analysis. Also, Avion's growth is organic not debt and/or dilution financed. Best thing for CRK would be if they do a hedge for that $70 million versus debt financing it. Hopefully F&M can get them a deal like AVR.

IMO given how discounted all companies are in the sector why would one invest in a company losing money versus one that is making money? Simple production is only one part of the equation but, I'm sure you already know that.