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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Comment by aaaaaarghon Jul 28, 2011 1:26am
329 Views
Post# 18881598

RE: wHAT's wrong with this stock?

RE: wHAT's wrong with this stock?Take my opinion for what it is worth as I have just started looking into this company but have been waiting for another correction to get in, so a fresh set of eyes.   I see good property and cash flow.  I like the recent merger as economies of scale help bring down overall costs (per barrel).   I  see that they are actively acquiring and drilling to rapidly expand production but using debt to do it.  (a wash in my eyes).   What I don't see is a (hard) profit for several years at least.   It is very hard to put a price on a stock that has no positive EPS.  (What multiple do you use)....   Of course, I understand that they are using their cash flow to grow production which of course still adds value, but you have less metrics to work with.  Even though I understand it, I still like to see  a positive EPS on a company even if it is small. (personal opinion).   I also don't like adding to debt for almost any reason. (another personal opinion).  As a result, I am currently fighting myself as I do see a very agressive management team and growth profile.   If this gets back into the 6's, it may be the push I need to take the plunge.   Sitting on the sidelines as I look into this company further........
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