Friday, August 8, 2008
U.S. Energy Corp. Reports
U.S. Energy Corp. (Nasdaq: USEG) released its 10Q today. I haven't had a chance to look at it in depth yet, but the revenue from the Gillette, WY development looks consistent with the CEO's description of it in our conversation last month (see: "A Conversation with the CEO of USEG"). If I see anything worth noting after looking at this in more depth, I'll post it on this blog.
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2 comments:
Does the fact that USEG shares are near 3-year lows in what had been [until recently] a 'hot' mining and energy sector, give you pause?
Why are investors shying away from these shares?
How can you know whta they are worth with so little information available?
Anonymous (aka, Paul Price),
Thanks for your comment.
"Does the fact that USEG shares are near 3-year lows in what had been [until recently] a 'hot' mining and energy sector, give you pause?"
Not particularly.
"Why are investors shying away from these shares?"
Most investors look for stocks with current earnings, and the mining and energy sectors are full of such stocks. Since USEG isn't currently profitable, it doesn't show up on most investors' screens.
"How can you know whta they are worth with so little information available?"
There's actually a fair amount of information available in the company's filings. I synthesized most of it in this detailed post, U.S. Energy Corp. (USEG), and provided additional info in this post, which detailed my Q&A with the company's CEO, A Conversation with the CEO of USEG.
I haven't attempted to calculate an "intrinsic value" for the company, partly because I think it's a somewhat slippery concept in this instance, but I feel comfortable owning shares at a little over half of their book value, and I think the stock will get on more investors' radar screens if the company is successful in generating positive earnings within the next 6-9 months or so. The revenue numbers from the Gillette development are a positive step in that direction.
If you have any specific questions about either of those posts, or the company in general, let me know and I'll be happy to try to answer them.
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