RE: Dmacd...Hi YSL, Thanks for your reply. You make some very valid points. I am well aware of the need to factor in growth projections & efficiencies when valueing companies as well as things such as PEG ratios. I know there are many other efficiency ratios that I did not include in my data but one only has so much time. I am not necessarily choosing sides between one company or another, only trying to determine the merits between them. I like to make money on stocks & quite frankly will put my money where I think the best risk/reward exist. There is no question that PEY has been the best performing company using any criteria over the past few years. It would be a great debate however as to how much of that is already priced or even possibly overpriced into the stock. In that regard 100 people would give you 100 different opinions.
A friend sent me the Yorkton report from April 30 this morning. While I was aware that there were some production challenges going on for RER, I was not aware of the overstatement. I try to stay on top of the news & yet through all my searching including Sedar, NR's, CIBC reports & the RER website, I cannot find any mention of what Yorkton reported on April 30. Can anyone provide me info as to where they found out this info? How was this info released to the public? Where is the fair disclosure? Obviously the stock reacted negatively starting on Monday April 28. The volume came in on April 29. While Yorkton pegs the year end exit rate as being up 40%, they estimate the overall 2003 production growth as being up 26%. This will change some of the data in my chart. The estimates used in my chart probably only partially reflect this change.
Clearly RER is currently facing some challenges but the stock also carries a low valuation to reflect those challenges. Therein lies the potential opportunity which may or may not be rewarded. I follow & hold two other stocks in other sectors that got beaten down over the past year for short term challenges that they were experiencing. I continued to like the stories regardless & eventually loaded up on these two stocks at the depressed prices. I have already been well rewarded & taken some of the profits from these stocks which are Bennett Environmental & Cryptologic. I have no way of knowing what the future holds for RER but I will sit tight for now & watch the story. The only other O & G stock I hold directly is CHC Helicopter. Cheers!!!