GREY:VFGGF - Post by User
Post by
splurgeon Nov 28, 2012 1:03pm
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Post# 20655629
CFPS Q1 2013 annualized
CFPS Q1 2013 annualized If we use 5000 boes/d and a $80 oil and suggesting a $56 corporate (lower than q3 $64 per boe) overall netback in Q1 before merger.....
then cash flow q1 should approach $25.5 million and based on 243 million fully diluted shares outstanding implies almost $0.11 per funds flow. Annualized (and before waterfloods and benefits and synergies of merger) equates to $0.42 per share or 3.8 times cash flow at $1.60. Not bad given record and growth potential.
Just bought in and already losing money???? What are the concerns of the analysts who downgraded? My sense is some of the Spartan shareholders are taking profits not knowing Pinecrest that well. This is always normal in a merger as some will always sell. Secondly brokers and hedge funds could always short Spartan and then eventually buy back PRY although not sure of the short positions on either. High volume since merger annnouncement is starting to abate and as we approach mid January the volume should be back to normal I would hope and the shares trading higher.
The 3/1 consolidation has no impact on numbers and only allows for more margin buying and also allows more pension fund managers to take notice. Pension fund investment policy statements or managers internal investment policies often have clauses that prohibit purchasing stocks under $2.00 or $5.00 etc in some cases. Splits and consolidations of this magnitude have no impact on share price performance other than what I just mentioned.
cheers