Hold week ending 11 September 2015

Monday, 14th September 2015 09:06 - by Moosh

Empyrean Energy (TIDM: EME)

 Since buying EME recently, the company issued an update on operations as well as the final results for the financial year ending 31 March 2015. The results can be whittled down to:

 Earnings per share of ~1.5p, fair value begins at PE ratio 10 (at 15p) and stretches to a top end PE ratio 17 (at 25.5p). The latest closing price of 6p (11 September 2015) yields a PE ratio 4, suggesting the current price undervalues the recent earnings.

 For this reason, EME remains a ‘HOLD’ at least until 15p when fair value begins. Needless to say, but I will say it all the same, P2 reserves comes in at a price well above 15p too. Given the company is suitably financed, hedged, and profitable, I feel it prudent to hold EME while the going is good, compared to other AIM oil/gas companies.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.