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Just had a good chat with the O&G analyst at work. Here's some considerations for everyone to think about when looking at early stage O&G explor cos:
- Check financials and news releases to see if cash on hand isn't already spoken for with acquisitions
- There's a lack of short term catalysts for companies to bring them up to their NAVs. Most of the juniors will be trading at valuations like what you see for aforementioned companies. They're turtling now because the environment sucks. Porto for example, is having problems raising equity to develop their properties further. They also (in his opinion) overpaid for the properties paying close to 1x NAV when other companies are valued at 0.5x NAV.
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