01-26-2014, 02:19 AM
'Relker' pid='36559' datel Wrote:
'mikesioc' pid='36543' datel Wrote:
'Relker' pid='36526' datel Wrote:At present the market value does not reflect the true value of the company. With all the license payments coming it must be possible to buyback some shares. I fancy that the new management is smart enough to make use of the present leverage effect. With a successful drilling programme a $ 30 B stock value is not a dream.
Are you suggesting that a share buyback somehow increases the market capitalization? $30 billion market cap is $613 per share. A dream would be putting it kindly. Tap the brakes.
Woodside has a net income amounting to $ 3 B. Based on a PE of 10 the marketvalue is $ 30 B. The 30% stake in PRL 15 will yield IOC approx $1.5 B net income based on 2 trains. It is not unlikely that the string of pearls outside PRL15 will generate 2 extra trains.
Woodside has been delivering gas since 1984. Giant leap to assume IOC gets to $30 billion in the next 20 years. If we can replicate Oil Search over the next 7 years that's a reasonable expectation.