PSA 0.00% 5.5¢ petsec energy limited

junior oilers, comparative market caps

  1. 1,317 Posts.
    Just been looking at some market capitalisations for some of the larger junior oilers and came up with some interesting figures based onFRiday's closing prices and not taking into account options, most of which are anyway well out of the money:

    AWE $166 million
    PSA $68 million
    ARQ $92 million
    HDR $238 million
    AYO $134 million
    MOS $45 million
    BPT $59 million
    ROC $117 million

    I thought to myself when the instos wake up to the value PSA represents in this lot surely they will bid the share price up further. For the moment PSA, as with most oilers, is being bought by small retail traders and day traders And I would hazard a guess that a company¡¯s capitalisation, or P/E ratio or reserves does not concern us too greatly. We have pretty short investment horizons and are looking for the best near term ¡°feed¡±. So if AYO looks like moving up as it does we hop on board. I think it is called momentum trading.

    But with oil prices showing every sign of staying in the mid twenties and US gas prices confounding expectations, pretty soon some serious money is going to return to the oilers. The energy sector is starting to look pretty attractive in a number of markets. When the serious money arrives it will look at comparative capitalisations, revenue flows and reserves and will come to the conclusion that there are some pretty undervalued stocks out there. And I think they would conclude that PSA , ROC and maybe ARQ are the most undervalued based on the above figures. Be interested to know what others think.

watchlist Created with Sketch. Add PSA (ASX) to my watchlist
(20min delay)
Mkt cap ! $21.92M
Open High Low Value Volume
5.6¢ 5.6¢ 5.5¢ $2.697K 48.78K

Buyers (Bids)

No. Vol. Price($)
1 13653 5.6¢

Sellers (Offers)

Price($) Vol. No.
6.8¢ 14176 1
View Market Depth
Last trade - 13.04pm 23/01/2020 (20 minute delay) ?
PSA (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.