Petrokazakhstan Inc. Message Board

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Gold/Mining/Energy : Petrokazakhstan Inc.

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To: forecaster who wrote (893)	3/6/2000 7:07:00 AM
From: a_player_2001	of 2357

The stock should be worth C$15 as the numbers stand now. Based on the pro forma results released on the 24/1/99 of net cashflow per quarter of USD 90m (based on lower oil prices of $22-24 per barrel). So USD 360m (or CAD 522m )per year. Taking into acount C$100m of cap. ex. per yr, we still have a net cashflow of C$ 422m per year. Based on the normal emerging market benchmark valuation for this type of company at three times cashflow, we have a C$1.266bn company, then divide by 80 million shares and we get C$15.83 per share. If the share price languishes at current levels then HHL could either pay out an annual dividend of $C 5.28 (114%! dividend) per share or moe realistically simply buy back it's own shares from the market. Debt servicing should be no problem and HHL should be able to entirely repay their debt by 3rd quarter given the proforma results (and even more so should oil prices remain in the $25-30 range). This is why this stock is massively undervalued. I think perhaps too many people are being bitten by the internet bug and are forgetting real economics of actual cashflows as oppossed to internet speculation. Load up while you can regards, player

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