OTCPK:ARNBF - Post by User
Comment by
good40on Nov 18, 2011 6:30pm
162 Views
Post# 19250209
RE: RE: RE: RE: Reserves and Resources
RE: RE: RE: RE: Reserves and ResourcesThere's no question that this is trading at a premium to the value of proved assets. The problem Profess, is that
the speculative potential is already the biggest part of the price. I'm a veteran with valuing growth companies and as usual, the price gets ahead of itself, until investors become comfortable with " Murphy's Law " and the difficulties associated with older wells declining in production combined with normal operational troubles with
well maintenance. I don't hate this project, neither am I disenchanted with management... it's just too expensive. I have a couple of others where they're not only too expensive, but economically the business plan makes no sense whatsoever.
In my opinion, value with this starts about $2/share... and the premium should be applied to that.