Longview Oil Corp LGVWF

RE:RE:Cash Flow Sensitivity

[Nawaralsaadi]

Thanks for doing the calculation Terr. Based on your cash flow estimate the company is currently trading at an EV/DACF ratio of 3.7, while their peers trade for an average of 7.7 (RBC January 6^th). At that average EV/DACF ratio, LNV would be trading at $12.2.  For the stock to reach my valuation target of $7 to $8 it merely needs to trade at 5 EV/DACF, which is far from a stretch when we consider the renewed emphasis on growth and the strong likelihood of a resolution to the AAV relationship in 2014. Both the NAV value and cash flow calculation point to a normalized stock price at least 50% higher from where we are trading now.    

Regards,
Nawar