Sweet 16 trading at the lowest PE ratio EVER

[dan_s]

Based on August 6 closing prices, the Sweet 16 is now trading less that a PE ratio of 5.7 based on my EPS forecasts for 2022.
The portfolio is also trading at 3.1X my operating cash flow per share forecast for 2021. CRK closed on August 6 at just 1.4 X my operating cash flow per share forecast for 2021 of $4.15. PXD is trading at 5.7 X my 2021 operating cash flow per share forecast of $26.58 and that is too low for a company the quality of PXD.

We will be publishing updated company profiles on each of the Sweet 16 companies during August.

[uberCOAT]

CRK, wow, 1.4X absolutely absurd.

[dan_s]

Despite some "Bad Hedges", CRK is going to generate close to $600 million of operating cash flow during Q3 & Q4 with ~50% being free cash flow. At today's natural gas price, their average Haynesville horizontal well pays out in less than six months. Their year-end P1 reserves valuation will be a "stunning" increase from where it was at 12-31-2020. Hang tough.

[uberCOAT]

Absolutely, I think the second half of this year and into 2022 will be great for shareholders of CRK.

[dan_s]

I have contacted CRK several times asking them to do a webinar for us, but they don't seem interested in getting their story out there. I may try again in a couple of weeks. IMO the stock is grossly undervalued.