RE:RE:From the blogosphere -Eric NuttallWildcattter is 100% correct on what he wrote below but he's also 50% correct in the whole Nuttall smoke & mirrors show.
What Nuttall does is stack companies at FCF yields at $x price (as Wildcattter astutely noted), but he ALSO uses FCF on market cap only and doesn't include the debt side of the EV equation.
If you use EV, you'll have companies like AAV (and Kelt) with the highest FCF yields. Highly indebted companies like MEG & BTE, and to a degree, Peyto, will always stack well if you hide the debt from the FCF equation calculated this way, but in reality, they will be paying every penny they have for many years to come to debt reduction.
~The Great Cheadle.
Wildcattter wrote: and do you see something wrong with nuttalls report?<br /> <br /> I do...lol<br /> <br /> if you compare the likes of meg and bte with aav it looks like the value is in meg and bte right?<br /> <br /> but he is doing a real diservice here...<br /> he uses at $60 oil price... way, way higher than present... yet he uses the present gas price...LOL<br /> <br /> if you are gonna compare aav and meg... use either present oil prices and present gas prices... fair enuf... or use a similar increse in the oil price and gas price, say a 25% increase or whatever you choose but treat them both equally for gawds sake...lol.<br /> <br /> BUT you cannot use an inflated oil price and a non-inflated gas price and say wowee... look how good meg is...LOL<br /> ..I mean what a load of dog poo, he is so obviously pumping oil plays probably cause he owns them and making gas look weak probably cause he does not own gas producers...<br /> <br /> I can do the same...<br /> <br /> I would counter with this... if gas prices go up by the near 25% and oil price do not go up... then gassers show the best return, obvioulsy...<br /> <br /> does that turnip not see his error? or is treating you readers like you are stupid?<br /> <br /> does anyone not see this? not think... how stupid?<br /> <br /> come on people use you friggin brain... this kind of report is not worth anything... it is junk report... increase oil price but not gas and say... look... oil is the place to be! DAHHHH<br /> <br /> so funny people fall for this.... are people this dumb? I cannot believe what I see there...LOL putting his name on that with no explanation... what a friggin dope report