Based on technicals this looks way over sold. Based on fundamentals it looks way undervalued: P/CF 2.4, P/B 0.65, EV/2P-reserves <$9, EV/boepd $40 000. FEL has only 200 000 acres of undeveloped land(net), but the RLI(2P) is 12 years. $150 million undrawn credit capacity.
Bought some.
2 comments:
I bought FeL about month ago, timing was somewhat wrong but im confident that stock price will be over 5$ near-mid term. I bought fel because fundamentals was good and compared to its peers it was undervalued, this Fellow is also in good position for growth.
Not much near term growth in sight, but the company ecomics are sound. The Sinclair wf pilot might provide a positive surprise.
I don't intend to hold this for any more than couple of months.
Th numbers used were borrowed from here:
http://www.investorvillage.com/groups.asp?mb=6781&mn=54320&pt=msg&mid=8738088
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