I, too, have been looking at the current plan for production facilities in NZ and noticed that the capacity is pretty well used up as soon as they can get the existing wells (incl Kauri) on line.
If we can reach 200 mmcfe per day in a year then I like the outlook for SFY's cash flow. Over the last 10 years, excluding 1998 due to huge write-downs, the stock has averaged a p/cf ratio of 4.1 - 8.4 (just freshly calculated off of an S&P report). I mentioned in my previous post that 4-8 was an industry average. That may well be, but I can only really say that it's SFY's historical range.
BTW, that S&P report still has SFY ranked 1- (worst possible rating) for its outlook, calls it technically bearish since June, and has a fair value of $26. All this while S&P is singing the praises of the drilling companies. Zack's just raised SFY from 5 (worst rating) to 4, so at least we're moving in the right direction.
Someone has kept a lid on the volume of this stock lately. I wonder what options expiration week will do for, or to, SFY's stock price.
Did I say that I like your numbers? Sure do! |
