Ann: Quarterly Cashflow Report, page-19

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01/05/17

08:44

Post #: 24370932
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Originally posted by cmonaussie ↑

So very true Sector. And back to the balance sheet as that is the source for determining the strength of the company and their prospects for growth.

And by growth I mean growth in EARNINGS (and yes I do mean to shout that). Not growth in revenue (plenty of companies have demonstrated revenue growth from unprofitable sales - you don't stay in business to long if you sell for a $1 what it costs you $1.50 to make). And earnings growth by increasing you financial leverage is not sustainable growth at all. Earnings growth needs to come from sustainable residual operating income from assets (those low operating costs, low capital cost, high payback properties).

Now here's something to consider. AKK has taken the impairments and has sold properties so their DD&A costs will come down (and that has a +ve effect on Earnings). HOWEVER, at this point it time (and you'll get to measure it again when their annual report is published in a few months) the Common Stockholder Equity (CSE = you guys the equity investor) is in fact equal to the NOA (Net Operating Assets which is now really only Pathfinder). An up until a few days ago AKK has zero NFO (Net Financial Obligations). The reported value of CSE (the book value) is about double what the market thinks (i.e. the market value). The market does not believe the asset value is $16M.

I've yet to see any promoter here justify the value per share at $0.004 and btw we saw plenty when is was 3 times that price using all kinds of spin to justify valuations much higher. Explain the spin for me/us that
shows value. This isn't SportsBet, Bet360 or those games.

When a company is putting forth fundamentals and business justifications then posters and readers should respect that and discuss those topics - THINK ABOUT IT.

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Yes, $53k in 9 months, BUT $43k to produce it.
and that was apparently turning HZ1 back on recently.

True earnings seems a dream. $3m spent on 3 wells...and above is result.

The spin is mind boggling compared to reported results.

AKK Price at posting: 0.4¢ Sentiment: Sell Disclosure: Not Held
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Ann: Quarterly Cashflow Report, page-19

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