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 : Panaco Corp (PANA) -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (71)	6/26/2000 11:04:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 115

BCBob, Great to see your interest here. I know you from some of the other O&G stuff and you know your O&G. In spite of the fact that the stock has nearly tripled in the last 2 months I believe it is still absurdly undervalued. I would challenge anyone to find me another E&P company with the following characteristics: 1) Selling at 1 x calendar yr. 2000 cash flow. 2) Selling at about half of 12/99 adjusted breakup value (i.e., replacing book value of reserves with SEC PV 10 value). 3) Selling at around 1 x annual drilling budget. 4) Essentially completely unhedged production. 5) Poised to spend about half its market cap. in drilling $$$ over the next 4 months. 6) Currently trading on the OTCBB, which helps explain the severe undervaluation and which therefore provides for huge upside when & if they get back on the Nasdaq. Since there is no drilling news out for awhile, IMO you have a few more days before this thing starts moving big again. But I would recommend you complete your DD before too long. It could wake up and start moving again at any time, without advance notice. A lot of institutions are late to the party on the O&G stocks, and will soon be scouring the microcaps for nice little gems that got left behind, rather than paying, say, $6 for a share of Chesapeake Energy.