Was going through the screener and found this company. First thing i did was come to forum.
Mainly noticed it cause of such beaten down PE.
On a starter the company looks available for literally a cent on dollar if someone was to look at recent past year earnings.
On a brief look at balance sheet also we can see that the reserves are so huge in terms of almost liquid cash and investments that even with 17K CR borrowings the company is literally available for free.
On an other hand, if one would think why something be so miss-priced, we can argue that there is not much actual growth in terms of business(extracting crude). The bloated profits are due to the movement of oil prices. If prices were to return to previous of 75$ a barrel the profits would fall down.
A better thing to think would be how the future of oil prices look. If the prices of even 100$ will be sustained, the company at current valuations would be a gem.
Still at the current valuations I don’t see a huge downside risk.
Disclaimer: Not invested.
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