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Strategies & Market Trends : Value Investing

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To: isopatch who wrote (13528)1/2/2002 1:19:57 PM
From: Bob Rudd  Read Replies (2) of 78565
 
isopatch: Trying to get some feel for average earning capability for EPEX, I took averages of last 5 years diluted EPS, normalized eps [whatever Market guide means by that?], and 4 years pro-forma eps and got -0.2034, 0.1678, & -0.25 respectively. Averaging those three, I got -0.0952.
The very low PE you cite is based on last years gas bubble. Next years estimate of .53, probably reflects some lock in, but methinks the value should reflect average earning power over the cycle.
I haven't looked at proven reserves or other asset based qualities and am interested to hear your take on whether the above is valid way to look at NG's.
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