Miller Energy Resources has taken its lumps from bloggers, websites and disgruntled shareholders who question the Knoxville company’s financial performance.
But today Miller caught a break with a positive piece on the financial website Seeking Alpha — perhaps because the authors have a long position on Miller.
Arvind Mallik and Jonathon Fite, Managing Partners of KMF Investments, suggest that Miller shares, are likely to double in value.
So far this year the oil and gas exploration and production company’s shares have increased from around $3 at the start if 2012 to $4.82 at mid afternoon today.
Mallik and Fite sum up their article noting that investors have been frustrated by operational delays at Miller. However in recent months “the company has made tangible progress, and the successful restart of the drilling program on the Osprey platform represents a breakthrough. With its net asset value of over $12 per share, Miller shares deserve to double from current levels.”
Mallik-Fite’s analysis stands in stark contrast to an earlier piece by Seeking Alpha contributor “Forensic Accounter.”
The Accounter takes a detailed look at what it calls the flawed assumptions of Miller’s reserve value.
Valuing the company based on its undeveloped reserved “could prove incredibly risky should current assumptions about the value of these undeveloped reserves prove to be faulty,” Forensic Accounter says.
Both articles are worth reading
Click here for Mallik-Fite’s article.
Click here for Forensic Acconter’s article.
Photo: Miller Energy’s Osprey platform in Alaska.