Petrominerales Ltd PMGLF

Q1 Results

[Squint1]

Cash flow is $1.46 Cdn. per share for the quarter or $5.84 Cdn.annualized.  At the closing priceof $31.40, the current price is 5.38 times cash flow for a company that producesnearly 100% oil with a cash flow of $42.11 Cdn. per bbl.  Not only is that cheap but based ontheir estimate of 49,587 bopd for the month of April, current productionrepresents a 30% increase over the first quarter volume level. 

[fdfd55]

I agree but why is it selling off?

[Squint1]

Could be due to the executive appointments and the less active role for John Wright in day-to-day affairs.

[Squint1]

Also this could be due to the softening of the oil price - although the average for Q1 was $79.08 per their report and is now $78.77 per the current WTI quote.  Not much difference.  Also they are unhedged on oil price - which is a good idea given their low debt level.  The low current market share valuation makes no sense given what they already have, their momentum and their land

[fdfd55]

Did anyone check the conference call?

[moneydigger]

Reason why it is selling off is that they earned below analyst expectations. This is a buying opportunity. Petrominerales Q1 profit jumps ten-fold Thu May 6, 2010 6:21am EDT Stocks

[fdfd55]

But on globe investor, they were supposed to earn .65 which is a beat.