Energy Prospectus

The moves up in sn and sm have been breathtaking. I know your target is much higher still. Given the way the shorts are covering, and energy is re-balancing, do you intend to revisit your fair value targets on these and others?

I realize you just re-visited sm, but I guess I am wondering about upgrades in general.

For all of the model portfolio companies, I update my forecast models as soon as I can find the time after they release quarterly results. When we update the profiles I go back and triple check everything in my forecast models, which usually results in a slight adjustment to my forecast and valuation. The Sweet 16 is my top priority.

For the forecasts, I am assuming the WTI prices below for each period:
2016
Q1 = $30
Q2 = $35
Q3 = $40
Q4 = $50
2017 = $60

Note that these oil prices are significantly below what Raymond James is now forecasting.

In each forecast model I adjust for the individual company's hedges and regional price differentials.

All of the forecast models are macro driven, so if you want to use different oil, gas and NGL prices you can download the forecasts to EXCEL and change the commodity prices at the bottom of each forecast period. The spreadsheet will automatically adjust everything for you, including the stock valuation. We give you some valuable tools, but it is up to you to use them.

What and when you buy or sell anything is TOTALLY UP TO YOU. All I do is try to provide accurate forecasts and keep members up to date on what is happening out there.