Insanity is dominant with CKE. But this is the time when the canny investors make the highest returns. Let the numbers speak:

As of March 2017, CKE has working capital surplus of $25 million and Zero Debt.

Current Enterprise Value at $0.30 per share is just $40 million!!!!!!


But Proved reserves NPV-10 alone is $66 million (and it will grow by year end thanks to the new wells drilled this year).

Proved and Probable NPV-10 is $128 million (and it will grow by year end thanks to the new wells drilled this year).

NAV NPV-10 is $192 million (and it will grow by year end thanks to the new wells drilled this year).

Production was 5,000 boepd in March 2017, so it trades for just $8,000 per boepd!

  • We brought on-stream an additional three (2.64 net) wells at our Birley/Umbach area late in the first quarter bringing our current number of producing wells in this area to nine wells (7.63 net). Our total current production is approximately 5,050 boe/d.

2P reserves are almost 27 MMboe, so it trades for just $1.4 per boe!

Also, it currently trades at just 3.5 times the estimated annual cash flow for 2017!


Check Leucrotta (LXE) with just 2,700 boepd and Storm (SRX). Both are natural gas weighted with 75% - 85% natural gas weighting. Compare their current metrics per boepd, per boe, per Cash Flow with CKE's. Huge valuation gap.