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

To: Rick W. who wrote (4549)	1/23/1998 2:45:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24921

R.W. / Pacalta Resources I don't follow the company closely. Further, I don't know what the leatest news release means to the company in terms of what had been forecasted. Pacalta is a wonderful story. However, of all the companies in the "high flyer" category, this is the one that had the highest premium built into to their cash flow multiple. I could never understand why the company sold at so high a multiple. Here's what the picture looks right now. SYM HI LO JAN 23 97 CF 98 CF 99 CF 97CF/P 98CF/P 99CF/P PAZ $27.40 $ 8.00 $ 9.55 $0.27 $1.04 $1.87 35.4X 9.2X 5.1X You can calculate cash flow/price multiples at the high of $27.40 and you can begin to understand why I felt shares were at astronomical levels. Back in June I mentioned this and said there was no room for error. When one looks at shares today, after the stock has already lost about 65% of its market cap, there is still premium built into the current share price ---- and still no room for error. Keep in mind, if the company falls short of their forecast, these numbers will still loom larger, or shares will further fall to maintain the multiples. It will be interesting to learn of NAV in relation to share price value. I couldn't find any past NAV numbers.