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Duma Energy Corp, Initiating coverage

Zacks Equity Research

Duma Energy Corp, Initiating coverage.

Duma Energy Corp (DUMA) is an oil and natural gas company that owns producing properties in Texas and Illinois. The company has a significant interest is leases under exploration in Namibia that exceed 5 million acres with an estimated billion bbls of reserves in just one structure.

The company is profitable and revenue is growing rapidly. Our fiscal year 2013 (July 31) estimates are $20 million in revenue and $0.22 a share in earnings. Fiscal 2014 estimates are $34 million and $0.53 a share. The P/E on 2014 earnings is 3.6.

We are initiating coverage with an outperform rating and a $5 price target.

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