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09.20.09 TimelessWealth.net issues overlooked trading idea with Petroflow Energy Ltd.: PED ($0.93).
Dear Subscriber,
TimelessWealth.net has issued an overlooked trading idea with
Petroflow Energy Limited (PED), an oil and natural gas company.
Since bottoming in early September, the Natural Gas Index ($NATGAS),
has rebounded as high as $4.82, representing growth of 100%;
to-date having appreciated 93%. Petroflow Energy Limited
experienced similar price movement, but to date has appreciated
less than 37% during the same time frame. The market is
selectively targeting undervalued Natural Gas producers in
anticipation of a year-end 2009 rally, as eminent Seeking Alpha
columnist, Joseph L. Shaefer writes, “Natural Gas: America's
Energy Salvation”.
Trailing the Natural Gas Index, Petroflow Energy Limited may
very well fill investors’ criteria and appreciate in price, as a
result. Our complimentary technical analysis examining the price
movement of Petroflow Energy Limited, relative to the Natural
Gas Index, follows here
(please click to view).
Petroflow Energy Ltd.
engages in the exploration, development, and production of oil
and natural gas in Oklahoma, Texas, and Alberta. It produces
approximately 3,688 boe/day of oil, natural gas, and natural gas
liquids; and has access to approximately 101,489 gross acres of
undeveloped land. Petroflow Energy Ltd. was incorporated in 1974
and is headquartered in Calgary, Canada. The company focuses
primarily on Natural Gas production (82%); Oil production,
secondary (18%).
The
Oil & Gas Drilling &
Exploration industry has an average price to earnings (P/E)
ratio of 16, whereas Petroflow Energy Limited (PED) currently
($0.93) trades at a P/E of 4.65. Price to earnings ratios are
important calculations value investors use in recognizing an
undervalued company. It is often considered that a P/E ratio
under 10 is suggestive of an overlooked market, one which will
eventually adjust and provide for a high return on investment (ROI).
According to yahoo
finance Petroflow Energy’s trailing twelve months (ttm) revenue
amounted to $34,900,000; net income, $6,320,000. There are
29,509,894 shares issued and outstanding as of June 30th, 2009,
the most recent quarter. With fully diluted earnings per share
(EPS) of $0.20 (net income divided by shares issued and
outstanding), a fair value calculation, EPS ($0.20) multiplied
by the industry’s P/E ratio (16) derives fair market value of
$3.20 per common share, representing a potential ROI of 244%.
Petroflow Energy’s market capitalization, $27,444,201,
represents a potential 212% ROI, when adjusted to the Oil & Gas
Drilling & Exploration industry average market capitalization of
$85,660,000.
As
Natural Gas rallies into 2010, we anticipate small-cap Natural
Gas producers, such as Petroflow Energy Limited (PED), will
exhibit vast potential for a high ROI. We strongly encourage
you review this trading idea with further research. Our report
is designed to cover key technical and fundamental concepts
while providing a starting point with due diligence material.
All the best.
Sincerely,
Edward Stevenson.
Timeless Wealth Staff.
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