PSA 0.00% 2.1¢ petsec energy limited

daily unsubtle ramp.....of value

  1. 1,317 Posts.
    Hi All,

    At the current Henry Hub spot price of US$4.44 and allowing for production costs of 50 cents (and PSA¡¯s hedging of 5mmcf at US$4.87 until the end of October), at a daily production rate of 17 mmcf (including Ship Shoal) I estimate that Petsec will make a net operating profit (ie. profit after production costs) of around A$98,335 in the 24 hours from 28 to 29 October from its operations in the GOM. Add that to the previous five days net operating cash flow of A$621,358 and:

    You have A$719,693 or nearly three quarters of a million dollars in free cash flow in SEVEN DAYS!.

    The point of this "ramp" is to demonstrate that there are oilers out there making good money and few better than Petsec. PSA is on track to make its best ever profit this year, better than 1996 or 1997 when its share prices was in the stratosphere. (ie.$6-$7 as against 78 cents today!!!)

    If you want to invest in rubbish today for a gain tomorrow then best you don't invest in the market at all. How many hotcopperites have been burned recently by Molopo's run up on the back of pretty much zilch, or Amadeus, or Sydney Gas.

    And the valuations of the junior miners with nothing better than a "prospective tenement "or two are just ridiculous. And as for LUM, well ...anything I could say would be libelous!!!

    If you are going to make money in this the speculative end of the market then pick something that is making money or about to make money. Cash is king.

    If you don't buy the Petsec story then have a look at AWE, ARQ, ROC, and amongst the tiddlers, VOY and FAR and think six months out. Do your own research, set up some parameters, write down on a piece of paper why you are buying a stock and what you hope it will do within what time frame. Set rigid stop losses and exercise them. If your stock doesn't perform according to your expectations then move on.

    It is not difficult to make money in the stock market but you have to work at it, have a plan (strategy) and be disciplined.

    Good luck all, JBC

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