Thank you Kerm, you are most helpful and I appreciate your opinion, as everybody else on this board I am quite sure.
Since you obviously know what you are talking about when it comes to oil & gas plays, let me ask you a few more questions, so that I may learn a little bit more from your knowledge. If you have answered the same topics before on this board, feel free to direct me to the proper responses. I'll understand that you may feel tired to repeat the same things too often.
First of all, if we take PRX as an example, which ratios do you feel are the most important to analyze an oil & gas play?
The P/E ratio does not seem very useful. In the case of PRX, it is a lofty 57 right now according to Yahoo! quotes. I suppose that revenues per share would be better. But what about debt to equity or return on shareholder equity? Cash flow per share (do you prefer free cash flow per share?) appears highly important in this industry, but why? And is there an easy way to come to a dependable figure if you are not a first class accountant?
Finally, ratios are of great value for the serious investor, no doubt about that, but at which levels would you say that they may give a reliable buy (or sell) signal on this particular industry?
Lot's of questions, as you see. I look forward to you answer.
Always eager to learn more,
Marc
P.S. -- A few last ones: What do you think of oil & gas trusts? Would you apply the same ratios as you do for regular plays to analyze them? Do you know any CDN issues that merit some investigating?
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