Stock trading around 2.6x earnings, oil/gas production half-ish hedged, gas price flat, oil price up almost 20% from mid february, 19 new oil wells being reported on this evening, and the stock is tanking.
I don't get it. I thought I did, but obviously I don't. It seems to me that middle east turmoil is a HUGELY bullish circumstance for galleon, as the price of a barrel of oil would blast through $200 if Saudi went offline. But apparently fear is the order of the day....
They also mentioned financing the purchase of more land by issuing equity. That may have something to do with the decline in the share price, not sure.
It is trading so far below book value one would think that at some point the true value has to be realized, and when it does the stock is an easy double. After all oil and NG are real assets and I don't see supply increasing or demand easing up anytime soon.
Dunno, maybe I'm just talking myself into buying more.
90% of production revenue was natural gas. They lost money from operations and they wrote off $30 million dollars of assets, which means they overpaid for assets.
I have been looking at this company as a potential investment but it share price has been in decline for about a year. I do not see the end of that in 2011 as the world stock markets and economies take a hit from energy cost, the declining purchases of the U.S. consumer which powers China's economy, etc.
I added more today @ $3.82. ($4.06 last week) I like this company's focus on cash flow and the capital structure. Very cheap on the basis of 1.50/share estimated 2011 cash flow. 2011 capex is 1/3 of the total market capitalization of GO! This is an oil company in Western Canada folks but insanity and fear have no limits. If they have paid dividend out of that cash flow, that would be great but hey they do cash buyback once in a while.