So what will the value of Magnum Hunter shares in 6 months?
Bloombergs 28/6/14 reports: Even in a business whose lifeblood is borrowing, Magnum Hunter Resources Corp. (MHR) stands out. The Houston-based shale driller owes $891 million -- about 70 times more than its earnings before interest, taxes, depreciation and amortization, or Ebitda, in the past year, according to data compiled by Bloomberg. The industry average is 4.3.
The company is spending about $2.72 on capital projects for every dollar of operating cash flow this year, Goldman Sachs Group Inc. estimated. Losses per share will widen to 38 cents in 2016 from 25 cents this year, Joseph Stewart, a New York-based Goldman Sachs analyst, said in a May 12 report.
AQO Price at posting:
37.0¢ Sentiment: None Disclosure: Unspecified
DLS Price at posting:
$1.51 Sentiment: Sell Disclosure: Not Held