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Denbury Resources Inc. Message Board

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  • keltus1952 keltus1952 Nov 4, 2011 11:34 AM Flag

    I'm through with Sandridge--it's a sandtrap!

    I sold my SD today @ 7.70, cost was 6.61 a few months ago.

    DNR is so much better and I'll continue to hold it, even though I still have a small loss as I bought in the 19's.

    Here's some numbers.....DNR....debt is about 1.7 X cash flow, which is considered a rather conservative number in the E&P business. SD's ratio is about 4.3 X cash flow, which is considered very aggressive, but not quite crazy.

    DNR is trading at about 4.7 X annual cash flow and SD is trading at about 5.7 X cash flow, not a bad ratio either, but possibly fitting with their debt level. DNR is a much better value though.

    By the way everyone....look at the cash flow numbers, not so much the EPS numbers. Cash flow is king in this business.

    Just my opinions........Kel

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    • sold mine ago too what a flop.been watching dnr for over a yr.fell asleep when it hit 10 a few wks ago.not chaseing here you will get another chance maybe not 10 but 12 or 13.

      • 1 Reply to mertxesapp
      • Aubrey and CHK, the Rodney Dangerfield of the oil bidness. They are selling for less than proved reserves and claim they have 111 tcf of potential above that. The Utica alone at 15k per acre, what they say they got from this deal, is $20 billion, almost the market cap. If Aubrey announced tomorrow the company was slashing cap ex, the company would be up 50% overnight. Problem is, I don't trust him either. Seems he is a growth junkie. This could be a plum for a big international company. And when gas come back, along with their oil volumes, the numbers will be big. He might just be vindicated.

2.90-0.14(-4.61%)Jul 25 4:01 PMEDT