Callon Petroleum (CPE) Update - Dec 2

[dan_s]

Callon only has 39.8 million shares of common stock outstanding. Today over 7.7 million shares changed hands. Shorts have gotten crushed.

CPE closed today at $10.59.

CPE's operating cash flow will be over $14/share this year. Book value is over $30/share. This is a company with over $1 Billion of annual revenues.

There is no justification for any stock to trade below operating cash flow per share unless it can't service its debt. CPE is current on all interest payments and there is nothing to indicate that it won't be able to stay that way.

[Roadster]

Hi Dan

CPE up over 24%

Market price is still below 2020 cash flow per share. Thus selling at ONE times cash flow. Book Value $ 30

Are you still expecting $ 18 ?

Thanks

[dan_s]

My valuation of CPE is $18 as of today.

LPI, which was a candidate for the Sweet 16, had a nice move today. My valuation of LPI is $30.