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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (7775)	11/8/2000 10:45:52 AM
From: Richard Saunders	Read Replies (1) \| Respond to of 24899

osp. - at risk of re-opening old spitting match here goes.... Re: BEC-tse. Call co. & ask for verification, personally I'm assuming the $1.10 number applies to basic number of shares. You are right that there is a difference between fully diluted and basic and one always needs to keep their eyes open. If co. does total Cashflow of $12mil for the year it will have been a very successful year & the share price should also be rewarded. How much of a reward? In the "olden days" the old rule of thumb used to be to consider buying when P/CF was less than 3 and to start looking for reasons to possibly be selling if the multiple crept up above 5x. Remember, those were the "olden days" and senior producers back then used to command at least several multiple points premium. Today you have things like TLM Talisman being valued for around 3.0x P/CF and many of the very small jrs. are being valued at 2x or in some cases less. I honestly don't know what a "reasonable" multiple currently is that could be looked at. Personally I'm willing to bet that a producer that operates in the western canadian sedimentary basin (ie. Alta., and possibly n.e. b.c. but.....) that currently produces CF at or more than $20 per barrel (10:1 gas conversion) and is able to keep debt at less than 1.5x cashflow will do o-k if it's purchased for equivalent of 2.0x P/CF. That's my main reason for still holding a position, the other reason is that from whatever and wherever I've dug the mgmt. also obtains passing marks and appears to have credibility. As mentioned though, make up your own mind and call mgmt. to verify everything. Credibility.......... yes osprey it's a shot. I know you like OEL and that's great. Personally I don't & have stated reasons before, most recently Oct. 23 when OEL was about $1.10 - $1.40 range. Prior to that you posted extensively about buy, buy, buy. #reply-14374348 when pres. was on "national t.v." and stock closed at $2.20 and made a high on that date of $2.49 #reply-14472084 I asked "what about fundamentals" question. Price closed at $1.61 and was as high as $1.71 #reply-14635702 you indicated that "anything under $1.50 should be fine for a nice trade" Stock closed at $1.40 and was as low as $1.10 Go ahead and compare the two however I'll keep with the situation I have just because I'm more comfortable with the area where ops. are being conducted and the personnel involved. OEL operates in a different area south of 49, is based out of the east coast and is a great trading vehicle, albeit illiquid at times, for the short and long part of trading. As mentioned before to you - "jack be nimble"......