Keep buying for long term..I look at other oil companies such as Novus NVS, with a market cap of $170 million and saying average flow of about 2200 per day and 3000 barrels of exit for 2011 and it gets me thinking of how undervalued Allstar really is.
Allstar is probably doing 600+ per day and targeting 2000 barrels exit for 2011 and the valuation on the books or the valuation the market is giving FNR for holding 90% of it is completely out of balance. Allstar should be $45 million based on current flows and $113 million based on 2011 exit rates. So somewhere in the middle would just be a fair comparision which should give Allstar about $71 million valuation attributed to FNR for owner of 90%. Well with Allstar on the books at $3 million there is a huge upside revalution comming. That should add over $4.50 to the current share price of FNR and put it at about $7.50 in my opinion. Dont let the week to week share price movements deter your purchasing. Keep adding when you have resources and you will be rewarded nicely. Sellers will be not be rewarded and shares will be getting tighter. Bonus that the CEO (Tom) owns about 15% which is $4.5 million at current prices invested. I really dont think he wants the stock lower which some suggest. Why would he want his 15% investment to go down just to get a discount on adding another 1% or so to his holdings. I think he would buy at any price when the company required more funds. FNR could probably just sell or reduce many of its holdings to concentrate on oil wells if need be and not even have to raise new money. Oil at $100 you have to love it. All in my opinion. FNR buyer.