Swift Energy (SFY)
Posted: Mon Feb 25, 2013 11:21 am
Sweet 16 Growth Portfolio: An updated company profile for Swift Energy (SFY) has been posted under the Sweet 16 Tab.
I know I harp on this, but investors need to ignore earnings per share (EPS) and focus on cash flow per share (CFPS) when evaluating E&P. Even more important is the year-end reserve report. At the core, any E&P company should be trading at the value of its proven reserves + upside in its undeveloped acreage - its debt. This is what companies look in their takeover targets.
SFY had CFPS of $7.09 in 2013 and will probably have more this year. So, it is trading at just 2X CFPS. That is darn cheap for a company with double digit proven reserve growth locked in. Read our profile.
SFY is moving to our Small-Cap Growth Portfolio just because it has a market cap under $1 Billion. Bonanza Creek (BCEI) is being move up to the Sweet 16.
I know I harp on this, but investors need to ignore earnings per share (EPS) and focus on cash flow per share (CFPS) when evaluating E&P. Even more important is the year-end reserve report. At the core, any E&P company should be trading at the value of its proven reserves + upside in its undeveloped acreage - its debt. This is what companies look in their takeover targets.
SFY had CFPS of $7.09 in 2013 and will probably have more this year. So, it is trading at just 2X CFPS. That is darn cheap for a company with double digit proven reserve growth locked in. Read our profile.
SFY is moving to our Small-Cap Growth Portfolio just because it has a market cap under $1 Billion. Bonanza Creek (BCEI) is being move up to the Sweet 16.