Maxx Petroleum-MXP,TSE Message Board

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Gold/Mining/Energy : Maxx Petroleum-MXP,TSE

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To: Scott Mc who wrote (26)	5/25/1997 8:46:00 PM
From: Ahmed Elneweihi	of 106

I notice many oil index charts are looking very positive. The American Amex Oil Index is making new highs and the TSE Oil and Gas Producer Index is challenging the highs of a few months ago. Also the driving season is upon us to help firm oil prices. What I just can not understand is why the market is giving such a low multiple for MXP. Usually the price/cash flow multiple for a growth company such as MXP is 5-7 (and for some stocks higher than that). Based on expected 1997 cf/sh of $ 0.67 for MXP, the stock should be trading between $ 3.3-4.7; not at $ 2.4. MXP has been trading at low multiple for a long time now. Is the reason being their reserve life index is only 6-7 years and this is considered low by the market? or is it that the company is not selling itself to investors and institutions? or what?

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