Citron Research Opines On Pyramid Oil (PDO)
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Today, Citron Research put out a negative note on Pyramid Oil (Amex: PDO). Citron believes Pyramid Oil is trading at quite a lofty valuation. In fact, Citron said, PDO trading at $44 a share is like oil trading at $450 a barrel.
Citron noted based on the last quarter a typical company would trade 5 times cash flow and should be around $8 a share. Citron said, "The company has not shown any significant P2 reserves that would justify this move. By the company’s own admissions in their filings they are not sitting on what they believe to be a potential oil windfall."
Citron is not saying that PDO is a "scam" but rather this stock is trading at quite a high lofty valuation. If oil falls, then expect PDO to perhaps plummet.
Citron noted based on the last quarter a typical company would trade 5 times cash flow and should be around $8 a share. Citron said, "The company has not shown any significant P2 reserves that would justify this move. By the company’s own admissions in their filings they are not sitting on what they believe to be a potential oil windfall."
Citron is not saying that PDO is a "scam" but rather this stock is trading at quite a high lofty valuation. If oil falls, then expect PDO to perhaps plummet.
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