LPI is the highest beta stock in the Sweet 16 because it has a very low number of shares outstanding for a company of its size (just 17.3 million shares).
It is also a "Day Traders Dream", so it has HIGH trading volume.
I have updated my forecast/valuation for Laredo using the new oil & gas price deck that I presented in my Saturday podcast.
LPI closed today at $116.32
My valuation increases by $2 to $160.
My valuation is just 3.5 X annualized operating cash flow per share. If the Company's actual results and their guidance continue to confirm my model assumptions, my valuation multiple will increase. By year-end the multiple could go to 5X, which would push the valuation over $250, because I will drop 2021 operating cash flow from the equation.
Laredo Petroleum (LPI) Valuation Update - June 7
Laredo Petroleum (LPI) Valuation Update - June 7
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group