TSXV:ABS.H - Post by User
Comment by
SmallCapPickeron Feb 12, 2008 10:47am
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Post# 14358392
RE: dont know much about oil
RE: dont know much about oilNo, it doesn't work like that. Your overhead costs are the same regardless of how much you're pumping out. And they only have a 50% share... Plus, 200/day may be on the generous side... so let's say 100/day... put all of that together, and by your calculations the stock is worth $1.50/(2 x 2) = 0.375. If you factor in the overhead costs, I think 0.10 is a reasonable price. But of course you have to also take into consideration the fact that the company hasn't made an express statement about the number of barrels, when they will start selling, etc...