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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (38960)	8/25/2010 8:16:06 AM
From: Madharry	Respond to of 78464

I dont like to pay too much attention to what management says about the value of their assets. it seems to be disproven time and time again by how the market prices their shares a few years later. I am still smarting from owning chk at $65 when they said they were worth $140. I do think the gassers are cheap now, of course they could continue to be so for quite a while. right now i am busy losing money on Goog.

To: Paul Senior who wrote (38960)	8/25/2010 10:29:56 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78464

re GEOI valuation attempt: - 25.6 BOE (~50% oil) Oil reserves: 12.8 BOE Oil @15$/share=192M$ Gas reserves: 12.8 BOE x6x 1.5$=115M$ Total reserve value:307M$ EV value: 337M$ (per yahoo) The 15$ for crude and 1.5$/MCFE are my values. They may be a little low but some of the reserves are still not proved, so warrant a discount. TOT for example trades at about <12$/ BOE proved reserve value (about 1/2 that if you include unproved ones) and their reserves are pretty oily. The upside with GEOI is their acreage and the possibility to create value. Based on my rough valuation, GEOI is not cheap based on current reserves.