RE:Bought a FEW more AGAIN Today :>))
bought a few more today as well.
.
This company is cheap, cheap, cheap. Just read three differenct research notes all calling for 200% plus gains for iniital targets.
if the stock does not go up then the price to cash flow would be .4x by next spring. Too ridiculous to happen.
The crazy leverage in this stock happens later this year when the second three well pad gets tied in. At that point the cash flow is more than enough to keep a drilling running continuously and cash flow grows exponentially faster.
Hardly any facilities needed = very fast tie, payback and crazy IRR's
at 9.00 gas - their netback is 45 bucks. All US funds.
the leverage here is just too crazy to explain.
24-25 million cu.ft/day being added with these three wells
(watch, they will probably ramp that to 32 million feet when they finish cleaning up the well!)
25,000 x $9.00 = $225k per day or $6.75 million per month off this three well pad.
total well costs paid out in 75 days.
seriously crazy.