A pullback on a very undervalued stock This stock is dirt cheap and is trading at under 19,000 per flowing barrel. As a reference point the recent CPG acquisition was 30,000 per flowing barrel and CPG is viewed as having paid a very low price.
To show how low IPO is valued, if they received $30,000 per flowing barrel, the shares would be worth $1.30 If they were valued like others in the industry or about $40,000 per flowing barrel, they would be trading at about $2 per share.
Today they are trading at 38 cents down from 45 cents earlier in the week. They will have free cash flow (after deducting capex) of over 20 cents per share this year. Crazy cheap.