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Semi retired mature experienced fundamental analysis investor focusing on Energy stocks.
  • Magellan Petroleum Appears Weak But Is Undervalued

    A shallow look at just the surface of Magellan Petroleum (NASDAQ:MPET) might indicate "weakness".
    However, a little research shows a very high Reward to Risk Ratio. Cash, no Debt, Present Value of Proved Reserves is $3/share, Major undeveloped assets out of harm's way on 3 different friendly continents, and plans in process to monetize 8 of the different assets.

    Recently an Institutional advisory research group initiated coverage of MPET with a "Buy". AND, just today a second such firm, CK Cooper, initiated a "Buy".

    With the current M&A Environment and large amounts of "idle" cash--My fear is that MPET will be taken over before it reaches it's potential--$5 to $10/share. So much for Weakness.

    Disclosure: I am long MPET.

    Feb 22 5:57 AM | Link | Comment!
  • Magellan Petroleum Fundamentals Show Value

    MPET Annual Report (pages 78-79) shows the Present Value of the PROVED Reserves is $130 million based on $85/BOE. This becomes $138 million at the current $95/BOE 138 divided by 44.6 = $3.09/share for just the Proved Reserves in the U.S. and Australia. With cash, no debt, and seven other secure assets far from the middle east in U.S., Australia, and the U.K. MPET Fundamentals show great near term Potential.

    Disclosure: I am long MPET.

    Feb 20 10:54 AM | Link | Comment!
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