Deep Value could get Deeper
Dontcha just love those "on the other hand..." kind of posts??? Here's another.
As has been pointed out by Large, this stock is cheap. Using 100 million shares outstanding and $5 million debt, the enterprise value is ballpark $85 million at a stock price of 80 cents. Hasn't hit 80 cents yet, but I wouldn't be surprised if it did.
With 12 million boes P1 reserves, you're paying $7 per boe. 2P reserves of 18.5 million cost you $4.60 per boe, and $21,000 per daily barrel, approximately.
According to a recent (Sept 25) CIBC report, oil-weighted companies trade at an average value of $81,400 per daily barrel and $13.11 per 2P boe. Of course, most of these "average" companies are much larger than PPR, so apply a micro-cap discount that comforts you. Enerplus is worth $6.67 per boe, Raging River $32.13 and Tamarack Valley $8.92.
If PPR were to be valued at a 20% discount to TVE, the stock would be at $1.27 per share.
As has been pointed out by Pennydreadful, one shouldn't get excited by Goldman owning a whack becuz they don't "own" it. Rather, some of their customers do. When we see multi-million share blocks of stock change hands, that will signal better times ahead. For all I know, that could be tomorrow morning. In the meantime, I'd suggest you put in an open order at a comfortable price and buy in size. The more orders that pile up at 80 cents, the better the chance that everyone gets filled. (As you probably guessed, 80 is my comfortable price, though I've got a starter position at 88 and 92.)
PS: I wouldn't be in this were it not for Leanne. Blame him (her?) if this turns into Prairie Improvident!!!