CNEH!!!Here is a summary of why this stock will fly.
1,600 barrels of oil a day at say $73.00 per barrel= $116,800 per day
or $3,504,000 per month, which on a quarterly bases will give $10,512,000 quarterly revenue. Which simply means we have a growing $42 million dollar company, that is currently based on the second quarter is operating at about a $20 million dollar level with projected earnings of $.20 cents per share.
Given the fact that the petroleum sector trades at a P/E of 18 to 25 times earnings we have a stock now trading at ten times earnings. Which means that the stock has further to go north. Given the sectors P/E factor, CNEH could easily be trading at .$20 x 18 to 25 times = a range of $3.60 to $5.00 per share.
Now if we use the projection of the 1,600 barrels scenario, we would have earnings (given the same cost of goods and net income ratios) of $.40 cents per share. Yes!!! this would have a doubling effect on the price per share to $7.20 to $10.00!!
If you buy a thousand shares Monday at $2.25, it would cost you $2,250 and eventually be worth $10,000.
Again, this is a pro forma and should be viewed as such. |
