Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Petrokazakhstan Inc. -- Ignore unavailable to you. Want to Upgrade?

To: forecaster who wrote (893)	3/6/2000 7:07:00 AM
From: a_player_2001	Respond to of 2357

The stock should be worth C$15 as the numbers stand now. Based on the pro forma results released on the 24/1/99 of net cashflow per quarter of USD 90m (based on lower oil prices of $22-24 per barrel). So USD 360m (or CAD 522m )per year. Taking into acount C$100m of cap. ex. per yr, we still have a net cashflow of C$ 422m per year. Based on the normal emerging market benchmark valuation for this type of company at three times cashflow, we have a C$1.266bn company, then divide by 80 million shares and we get C$15.83 per share. If the share price languishes at current levels then HHL could either pay out an annual dividend of $C 5.28 (114%! dividend) per share or moe realistically simply buy back it's own shares from the market. Debt servicing should be no problem and HHL should be able to entirely repay their debt by 3rd quarter given the proforma results (and even more so should oil prices remain in the $25-30 range). This is why this stock is massively undervalued. I think perhaps too many people are being bitten by the internet bug and are forgetting real economics of actual cashflows as oppossed to internet speculation. Load up while you can regards, player

To: forecaster who wrote (893)	3/6/2000 8:08:00 AM
From: cooliemon	Read Replies (1) \| Respond to of 2357

of course, my $50 prediction is based on numerous future occurrences, but my immediate valuation would in the $10-12us range....i think hhla's management(especially bernard and his expert contingent(not necessarily hhla people)) would probably fall over from laughter at some of the predictions on this thread....i think they have more up their sleeve that will be revealed as soon as this bankruptcy nuisance goes away....they're long past that problem....they're looking at future business possibilities....cooliemon