JQP - whatcha talkin 'bout Willis ?
* cfps is THE benchmark valuation *
It allways has been - allways will be .
JQP - go back & edit this comment while you can (VBG) !
<<I don't feel that you're using a meaningful metric due to the fact that you're not considering outstanding shares>>
CFPS is THE most common, most valid & most used valuation metric used by EVERYONE with E&P's - where have you been ?
Again - the amount of outstanding shares ? - you've been inhaling haven't you (VBG)?
...go to the link in that Merrill report, or SSB, or PRU - or any other broker/analyst report.
They usually list E&Ps by cfps valuation multiples in their rankings & valuation comments. Outstanding shares have nothing to do with cfps valuation multiples; as the "per share" part of that equation - kind of addreses that doesn't it (roflmao)?
Actually; your formula (or any single one) doesn't take into consideration many other valuation metrics for proved & probable reserves, growth rate, profitability, NAV's, PV-10, EBITDA etc. - NBL's production was down due to a mgmt decision that will prove to be a very profitable one. "Price to sales" is perhaps more valid with the Service co's - ie: the fab's & some mfg co's. UFAB, GIFI etc... there are a myriad of valuation metric's - but there is one & only one "BENCHMARK" valuation metric - that is, was and will continue to be - even to your personal disdain (VBG) - CFPS !
We all have opinions; TMR showed you the double edged natured of hedging, or not being hedged... I'm sure you'll remember that lesson ...
When we reach near historic separations between commodity prices and valuation multiples; and when all the mo-mo money has left; I fail to see ANY reason to play the small caps vs the large caps in this instance. If there is EVER a time to play large caps - this is it. With their upside to recent highs; why would anyone even dream of taking on the added risk of the small caps here ?!?!?
As far as MEXP, or RRC - I thought you would have learned by now (VBG)... This is a bigcap play presently; once they move & base; then the small caps may be the play again as they will lag the large caps on the initial mo-mo move imho.
Didn't you notice that MEXP had to rearrange its payment schedule to the BOM... you guys are missing something very, very important on MEXP... sure, at one time - with the PUBLIC info available from the company; it looked like MEXP should have become a $4+ stock here; but like EEE - sometimes there are underlying non-reported issues that perhaps can make the ususal valuation interpretations invalid... and the stock behaves accordingly. |
