Flint Energy…sold

The last sale from earlier this year was FES.to. I bought around this price and sold just over $17.

The timing of contracts for Flint makes it tough to value. You can have a couple of contracts finish right before the end of the reporting period and artificially inflate earnings.

Flint has struggled to win new meaningful contracts. This is even in light of the recent economic activity in the WCSB.

Flint could earn $1.00-1.20/share in 2012. That puts the current P/E between 11 and 13. Not cheap enough given the risks. There is some balance sheet leverage as well as a high degree of economic leverage.

I like the space (oil and gas services), but will be looking at smaller companies with a more incentivized management team.

Dean

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One response to “Flint Energy…sold

  1. Pingback: Flint Energy…sold - Petty Cash - B-Hive - WAGGLE

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