Tim Eriksen

Pyramid Oil Shares Set to Spike Again?

Of course if you spend just a couple of minutes actually looking at the income statement you would find that PDO had a tax credit in the March quarter. True earnings were closer to 15 cents. Their earnings growth is all due to higher oil prices so it is only sustainable if oil continues to go up.

PDO will beneift in the coming quarters from a natural gas find in Texas, but even with that additional production they will have a hard time hitting 25 cents in quarterly EPS.

Why in the world should PDO make anew run at $30 per share and thus trade at 30 times earnings? It shouldn't.