Paramount Resources Ltd T.POU

POU

[Carjack]

Paramount Resources (TSX:POU)

Overview: Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves in Canada, with a market cap of CA$3.83 billion.

Operations: The company generates revenue from its operations in the exploration and development of both conventional and unconventional petroleum and natural gas reserves in Canada.

Estimated Discount To Fair Value: 10.1%

Paramount Resources (CA$26.1) trades below its estimated fair value of CA$29.03, presenting a potential undervaluation based on cash flows. Earnings are forecast to grow 27.48% annually, outpacing the Canadian market's 15.3%. However, shareholder dilution occurred over the past year and profit margins have declined from 35.2% to 19.7%. Recent insider selling and dividends not well covered by free cash flows are concerns despite strong revenue growth in recent quarters and ongoing share buybacks.

[WillyGreen]

You get what you pay for  1. What shareholder dilution?  2. Dividends not covered by free cash flow ? 

[WillyGreen]

3. One other ridiculous statement about margins. Guess the author doesn't recognize that pou is building out plants in Willisden Green (costs money last time I checked) to benefit from future production lift in the region. Costs money to make money but what do I know ...I don't count the nickels. 

[MyHoneyPot]

This is a crazy post and POU, 50% of POU Capex spend is for the development of Willesden Green. The company has assets on the balance sheet north of  660 million dollars, with about 30 million in debt and production expected to surge in the 4th quarter. POU debt free essentially, is paying a 7.3% dividend, and has more than 660 million on the balance sheet.  Safe as it gets. MHP

[Moemoney42]

I just don't understand why the disconnect in the sector lately.. great company and on a constant down trend lately..!! Yet meme stocks with no revenue or FCF getting bids like no tomorrow..!! WTF is with this market lately..??

[WillyGreen]

Moe - no rational basis for the disconnect. Accept reality versus perception of reality. Very few knowledgeable energy investors anymore. This is a steal here.