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Quattro Exploration and Production Ltd QEXXF

Quattro Exploration and Production Ltd are principally engaged in the business of exploration and development of oil and natural gas reserves in Western Canada and Central America.


GREY:QEXXF - Post by User

Comment by perdikaoilgason Dec 21, 2014 4:08am
156 Views
Post# 23253500

RE:RE:RE:You only have to see these numbers!

RE:RE:RE:You only have to see these numbers!As quoted from that SeekingAlpha article about SRX and QXP:


" Storm Resources is a growing energy producer whose performance has not been impacted significantly by the recent drop of the oil price, primarily because its production is heavily natural gas weighted.

Nevertheless, Storm Resources does not wow me when I compare it to the peer group given that it carries outrageously high key metrics as shown in the previous paragraph.

Given also that the company is not debt free and does not have a top quartile operating netback compared to its natural gas weighted peers, Storm's staggering valuation at the current price of C$4.95 is not justifiable.

Do I foresee any slippage over the next months? Well, this is very likely because Storm's whopping valuation will have to come more in line with the peers' valuation sooner or later. And there is no question that I don't expect a major up-leg from the current levels of C$4.95 per share over the next months.

After all, Storm Resources is not my cup of tea when it comes to investing in the natural gas sector. My natural gas weighted picks right now are Epsilon Energy (OTCPK:EPSEF), a Toronto-listed (EPS.T) stock that I recommended at C$4.1 in a "Top Idea" article in July 2014, and Quattro Exploration & Production, another Toronto-listed (QXP.V) stock at the current price of C$0.34 per share. Quattro is a new, unknown and ridiculously cheap producer as shown above while being profitable and having a very strong balance sheet. To me, making money from an investment in Quattro now is like shooting a fish in a barrel. "

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