GREY:QEXXF - Post by User
Post by
elgaveenoon Jul 16, 2015 3:26pm
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Post# 23931273
New presentation partially digested...
New presentation partially digested...So, they are stuck on valuing the company shares at $2.50, which they say is justified by a 12X multiple of 2015 earnings. Simpe math is $0.21/share then for what they think the can earn this year. Q1 they earned roughly half a penny. So they need to average better than $0.07/quarter for the remainder of the year. Same assets, same op-ex, higher G&A, low commodity prices. I would expect they will do no better than another half penny next quarter, as would the next 2 quarters, wihtout any CAPEX.
So we will use the 12X and use $0.005x4Quarters= 12X($0.02)= $0.24 share price.
So now you have a reasonable explaination for base share price they trade at.
But... and this is the big one... they have no money for Capital expenditures. So as soon as you see them drilling a well (only 5 months left in the year to get to 3000 bbls) all the yearly earnings go away.
Bottom line: QXP production base does not support growth. Share price will move downward on negative sentiment, then down further on speculation when an equity deal is in the works. Haircut city.