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Gold/Mining/Energy : Strictly: Oil and Gas Exploration Companies -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (18)	8/7/1998 8:16:00 AM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 318

I don't think any of the E&P companies will see much stock price appreciation until commodity prices recover. Many are selling at deep discounts. Another favorite of mine is PETD. PETD drills exclusively for natural gas, and is based out of West Virginia. They've been drilling in appalacia for decades, and fund mostly with limited partnerships. Appalacia gas sells at a premium due to reduced transportation costs to Eastern markets. PETD keeps typically 25% of natural gas wells, and has an excellent drilling record. PETD is selling for around 8X current year earnings. The stock is depressed due to sector bearishness, and overhand from a secondary offering last year. Much of the proceeds haven't been put to use yet, putting a drag on earnings through share dilution. However, PETD management has shown the ability to pick quality acquisitions, etc., so I am very confident of continued growth both through acquisitions and the drill bit. There is almost no analyst coverage, but I expect the continued growth and market capitalization to eventually attract several industry analysts, and then, watch out!