numbers speak for themselves. ARX is mismanaged, balance sheet is proof. Fair price is in $9 range. Totally reliant on underlying commodity spot price for any life. No long term nor short term guidance.
The industry average price to earnings for NA Resources company's is 13. TOU is currently at 9 and ARC is at 24. How is TOU fairly priced?
As well TOU is at lower P/B than the industry average and ARC. How is TOU fairly priced?
ARC has a -9.5% negative net earnings and TOU a positive net earnings of +45%. Therefore how is TOU fairly priced?
TOU was way over sold and it hasn't reached the fair value metrics the industry has set. Simple because TOU has ran up 160% doesn't mean that this significant run is done as it was over sold in the opposite direction when resources companies were out of favour TOU retraced better than any other resource company but still remains under valued when compared to its peers and ARC. TOU is still better value than ARC simply according to the numbers.
ARC's revenue to debt ratio is 1:3. TOU's is 1.3:1. So how is TOU fairly valued? If it is that means ARC is way over valued. As well the technicals state that TOU has less resistance from both stocks current chart going forward. ARC close right on what will either be support or resistance where TOU hammered through huge resistance 3 times and has confirmed them all as support in the last 6 weeks a feat ARC has not accomplished and ARC faces massive resistance in the $13's
Although price targets are just that, targets, the latest price target for TOU is $70. That is a 56% increase from the current share price.
I hope ARC does well. But if TOU is "fairly valued" than one must conclude that ARC is way over valued. These are just the facts. Just the numbers.
Lets create a company called ARC, it will have nearly 3 times the P/E of TOU, it will have no forward guidance, it will have 1.8 billion in debt and only generate 500 million in net income compared to TOU's 1.3 billion and net income less debt that its annual net income and will have a market cap 5 billion below TOU but compare itself to TOU everyday, it will have over twice as many outstanding shares as TOU and nowhere near the volume of shares owned by insiders, it will have an EPS of nearly 10 times lower than TOU, it will cut its dividend twice in the last 12 months while TOU has only raised it's dividend since inception and offered a one time 'special dividend' that was equivalent to 3 years of ARC quarterly dividend payments and it will currently be bouncing it's head off technical resistance and unable to sustain above it with no support in sight closer than a 35% drop from current level and totally reliant on the underlaying spot price of oil for it's success due to the horrid balance sheet and low confidence in managment and their compete lack of forward guidance and for whom investors were calling for to resign only like 3-4 months ago? Sounds like a real mix for success right there... unreal
But day after day after day ARX people will show up on the TOU board and try to arm wrestle big pappy TOU and look like complete investing rockpiles when TRUTH be know, ARC isn't even in the same ionisphere as TOU and never will be on its current path.