Connacher Oil & Gas Ltd CLLZF

RE: Moving Up

[macc]

Earnings Per Share - EPS What does it Mean? The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Calculated as: = Net Income - Dividends on preferred stocks __________________________________________ Average Outstanding Shares The net income of the sale of 20,00 bpd is bigger then 10.000 bpd An important aspect of EPS that's often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so with less equity (investment) - that company would be more efficient at using its capital to generate income and, all other things being equal, would be a "better" company. Investors also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures. So,when the analysts see CLL construction being on time and on budget,their will be expectation that CLL will be just as good producing the oil.That will be good exposure even if their no real earning per shares as of yet.Credibility will be the issue right now.But in a year when CLL is producing 10,000 bpd at projected costs and they say we will do another pod for 10,000 bpd that will be very good exposure.And when CLL continues to expand the amount of recoverable oil on their leases.Analysts will expect eps before each quarter when CLL produces,if CLL meets or exceeds shares price go up. At this point exposure is not about EPS,but CLL ability to bring 10,000 Bpd online at projected costs.When they are producing said 10,000 Bpd then analysts will have projected EPS before each quarter.So to have the potential of greater Bpd production is great exposure.