Since I am heading over to Iceland to visit my granddaughter next week, we are going to publish a special edition of the newsletter on Monday. Gastar Exploration common stock (GST) is being added to our Small-Cap Growth Portfolio.
I really like what GST has acquired in Oklahoma. It will lock in 30% or more production growth for the next few years and it will balance their production profile. Plus, GST gives us more exposure to natural gas at a very reasonable price. At today's share price, GST is trading at less than 3X cash flow per share.
GST pfd stock has been in our High Yield Income Fund for almost a year, so we have been tracking the company closely.
I have posted my updated forecast model under the Watch List Tab.
First Call's price target is $3.41, which is a reasonable expectation by year-end.