dan ?
Posted: Fri May 06, 2011 11:48 am
can you explain how you arrive at fair value of 10x cf/sh? eg, for bexp you have a fair value of $37+. neither '11 nor '12 cf/sh numbers equate to this. i suspect you use some kind of avg??
BEXP deserves a high multiple because it has incredible production and reserve growth locked in for years. They are expecting 80% production growth this year and in 2012. That is the highest growth rate I have ever seen for a company of this size.
Plus, BEXP has a very valuable acreage position in the most promising oil play in North America.