RE: Very Cheap Natural Gas Stock
According to one report I see, FEL is trading at 4.9x 2010e EV/DACF vs. junior average of 7.8x, P/NAV (futures pricing) of 0.9x vs 1.3x for the industry. Regarding debt its debt/CF is 1.5x, which includes coverts and is inline with the industry average.
FEL is among several oil/gas juniors that are considerably undervalued versus Birchcliff, Crew, Paramount, etc. which are all 10+ EV/DACF. I started buying the beaten up ones under 6x such as FEL, VRO, GO, OEX and AXL. They have taken off since mid-December, still seem cheap, and have priced in low oil and gas so are really benefitting from these recent price pushes. Some of these companies can still get good IRR's at $4/mcf gas with the recent incentives from the Alberta government.