by: will_trade_for_cash (31/M/New York) Long-Term Sentiment: Strong Buy 10/18/05 09:19 am Msg: 8506 of 8508
TGC => EPS and PPS Projections For 2006 =>
Check this out from the 2nd Q report =>
Jeffrey R. Bailey, President of the Company, stated, "Although our results for the second quarter show a net loss attributable to common shareholders of $132,540, effectively averaging $0.00 per share of common stock, for the entire first half of 2005 we have experienced a positive cash flow from operations. Cash flow provided by operations is $691,747 for the six month period ended June 30, 2005, compared to cash flow used in operations of ($648,008) for the same period in 2004. We are pleased with the direction of the Company and expect to continue this trend in view of current market prices for oil and gas and our drilling activities in Kansas."
=> TGC only lost 132K in the 2nd quarter. That was with oil going for 25% less than it is now and gas going for about 1/3 the price it is now! They only need to report a net income of 480K to post a profit of .01/share. If they post a net profit of .02 a share or 960K in net income, that would be .08 for the year. Currently NGAS is trading at a multiple of 250. If TGC traded only at a multiple of 100, that would give TGC a share price of $8.00 based on '06 earnings of .08/share.
However, I think TGC will probably report .01 in November for the 3rd quarter, but the 4th quarter could see more like .03 -.05 and I expect that to continue through '06. Lets just use .03/quarter for '06. That would mean .12 EPS FY '06. Lets give that the same 100 multiple that is still 150 lower than NGAS. At .12 for '06 with a multiple of 100, TGC would be * $12.00 a share!!!!!!!
Posted as a reply to: Msg 8457 by will_trade_for_cash
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