Absolutely right on the SEA/industry interaction and going forward.
Service sector will be key.
Also I wanted to bring some number to play here on top of that BNN Joseph S. posted I made.
Right now, value Quebec acres as JS said is about $200/acre. A lot of shale plays today are selling for $3000/acre-$7000/acre from the ones I know about with today's gas prices..when gas was $13, it was more like $10,000-$15,000.
JS said it right, you can't value it at zero, because they're going forward and want full production in 2014. Anyway, lets give Quebec a weak $500/acre.
Cash = $150M/230M shares = 0.65
QC land = 336,000 NET acres * $500 = 0.73
That gives you about $1.50, not counting any of AB, BC, and SASK.
Give it a proper value of $2500/acre, but with it being sweet gas that need no refinement, premium to nymex, solid pipeline foundation in place and say even a $5 gas price in 2014 (I am low balling that $2500/acre)...anyway for arguments sake.
That'll give you an SP of about $4.30, again not counting any of AB, BC, and SASK.
I think today's $1.15 looks pretty pathetic in that regards of value. QEC seems to only trade based on a now type of attitude and short term thinking...but no doubt there are tens of millions holding with exactly that long term view.
What's stopping long term thinking shale gas companies from coming in and offering something for QEC...where they can just stash it away in their shale play reserves and leave it, even if they don't want to develop it now. I doubt any shareholder or company would agree to that anyway, but if the offer was $6-7, maybe...but I can bet management wouldn't there either. They have been holding strong for a long time now, even on those few bit opportunities to cash in (I know some shares have holding periods, but millions they hold don't...so they actually could have).
If nobody comes in to buy QEC, which I think there is a high possibility to happen in the next few years, then this company will be trading at levels that I don't even want to mention, but I think many of you get the idea of what that is.
Right now trading is like it always is for QEC, smart investors are picking away at this. Afterall, no reason to pay into asks when short term holders are selling to you for cheaper. In my experience, this is where smart money makes money.
Rocco
