How about NGAS

**njuyj77** Sun Oct 23, 2005 5:49 pm

How about NGAS
Hi Blast,

NGAS's valuation looks attractive to me. What do you think about it, among so many oil stock?

Thanks

**blast_investor** Sun Oct 23, 2005 7:09 pm

Hi njuyj77,

I do not like this stock. its valuation is pretty expensive and the company is pretty small.

In gas and oil world, I like mid-sized company most, they are cheapest and their growth is best. The next group I like is the biggest world, Exxon, etc. I typicially do not like small oil stocks like NGAS.

NGAS is pretty speculative. Its cash flow is pretty small and its valuation is trading at premium under cashflow or under per reserve calculation.

The reason that stocks like NGAS are hot is because these small players are darling of short term traders. They usually have a story to tell (oil of course) and more volatility, a traders' favorite. They typically are resource play, a story of some reserve in some place that have huge potential, but no current production or cash flow there. This is not my type. I am more of value investor that want cheap valuation, I do not need a fancy story to hear, I demand current immediate production rather than future production.

I believe long term oriented conservative value investors should avoid NGAS type of oil resource play stocks.

**njuyj77** Sun Oct 23, 2005 10:52 pm

Thanks a lot:)

blast_investor wrote: Hi njuyj77,

I do not like this stock. its valuation is pretty expensive and the company is pretty small.