Union Update No questions were asked on today's conference call but the summary was good in my mind. Interesting to note the company has experienced minimal disruption to production and sales due to the political transition in Tunisia.
Warren from Union Securities has an update today on WIX. Noting that Winstar had working capital of US$9.6 million,and was debt-free, here's part of his report:
Valuationand Recommendation
Winstar is on track to cash flow C$1.35 this year, rising to $2.30 next year. The stock is trading at multiples of 3.1 times this year’s cash flow estimate and 1.9 times next year’s estimate. Our 2012 forecast assumes production of 3,300 boed, an increase of over 50% from this year, and there is a high possibility that Winstar could beat this forecast.
We are maintaining our Strong Buy recommendation and target of $7.50 which approximates the asset value of the Company. Our target is a 3.3 times multiple of next year’s cash flow estimate, low for a company demonstrating a high degree of growth, with a determination to maintain a strong balance sheet.