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iShares Mortgage Real Estate Capped Message Board

  • akoilman1of1 akoilman1of1 Jan 31, 2004 10:27 AM Flag

    stifel nicolaus

    Stifel still has market outpreform their
    highest rating.

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    • "Valuation. We continue to believe Remington has a well-balanced exploratory portfolio of low-, medium- and high-end
      prospects that should continue to deliver solid reserve and production growth, with or without a grand-slam discovery.
      However, despite the aforementioned positives and 2003 organic production growth of 26%, REM still trades at a
      whopping 23% EV/EBITDAX multiple discount to 2004 E&P group averages. While we believe a minor discount is fair
      given the riskier nature of the GOM and its shorter reserve life, the discount is far too great in our opinion, especially
      given the potential reserve upside associated with REM�s exploration program. Our $24 target is based on a targeted
      normalized 2004 EV/EBITDAX multiple of 4.8x, which would still represent a significant discount to group average
      multiples of 6.0x. Investors have been frustrated by REM�s inability to �hit the big one�, but we continue to believe in
      REM management and its business model, and believe that patient investors will be rewarded." (When Stifel wrote this the stock price quoted in the report was $20.85. The discount to the group is obviously far wider at the present price of $18.85)

10.445+0.025(+0.24%)11:34 AMEDT