Early DaysNice to see some gains but we are very much wandering the foothills at this point. Ithaca still has a forward PE ratio for 2017 of under 1, based on ouput projections and $100 oil.
Every which way I look at the macro ecomomic position for oil leads me to the same conclusion - record high oil prices for 2017. Add to this the fact that Ithaca post first oil could become quite a 'hot stock' as the penny drops for the investing hordes, driving Ithaca's share price to a high earnings ratio.
I know, I know, a buyout would cut all that short, but there are other sector bargains out there - none quite like the current Ithaca valuation - so a buyout of Ithaca early in the oil sector recovery cycle would allow plenty of time for the reallocation of Ithaca gains to other oil sector opportunities.
I still cling to the hope that rapid price gains post Gdansk departure will cause potential bidders to hesitate as the share price continues to run away from them.
Doug