Quattro Exploration and Production Ltd QEXXF

RE:RE:Share price predictions

[elgaveeno]

So what you have to do is look at the earnings. If the company isn't earing, then it's bleeding. If it cost more to produce and operate than it receives in revenue, then you can't use a cash flow multiple to value them. The Q1 numbers will be the most telling. I look at Q2 2014 as the litmus test: it delivered $0.02/share earnings. Since then both gas and oil have hit the skids. The question was, how sensitive was earnings to commodities. Answer: the comany does not make money in the current price environment. So, the next thing is either to preserve $ by cutting G&A, or raise equity.