RE:RE:Valuation
Well, if you run the numbers, $80,000 per flowing barrel comes to: 6000*80,000 = 480,000,000 480,000,000 - 115,000,000 = 365,000,000 365,000,000 / 47,000,000 = $7.76 So that would be a way of fundamentally supporting why we would get over $7. Realistically we may not. But it's not difficult to support why we could. I'm thinking ~$6 just because even though the fundamentals support a higher price, there is a limit to the premium that someone will offer over where the shares have been trading. Even though I can support it being worth $7.76, all a buyer has to do is point to the way Longview has traded for the past year and tell me that obviously the market is the best judge of value (efficient market and all that) and that my fundamental analysis is obviously flawed. But there's your answer as to how to support the claim of $7+.