FTO is Undervalued...

vincentcolignon said: "Hi, I'm considering buying stocks from the Frontier Oil Company...it's an independent energy company engaged in oil refinery... I've checked a lot of stuffs: 1) The Ratio between the current assets and the current liabilities is 2.06 2) Long Term Debt is a lot less than the Net Current Assets. 3) The P/E ration is 5.81 4) The EPS has grown 244.1% in 5 years. 5) P/B times P/E is 16.268 But I have som fears considering that the price of oil is at its higher and that it could drop significantly, reducing the company's profits. Well what do you guys think about it...I think it's quite a nice time to buy it at a really good price !!!"

JimBob said: "oil is due for a drop a big one i would stay away from oil related securities."

rmelv said: "Have you heard the language from OPEC lately? They have no intention of increasing supply. I don't see oil below 90 dollars ever again."

ratAphooey said: "It should be interesting to see what happens with oil prices this summer. If they keep rising then there should be a lot of money in several of these oil companies. The oil companies are now complaining about the share being took by governments. Whether it will hurt profitability I cant say but everyone has their hand in everyone elses pockets."

Harry said: "[QUOTE=rmelv;67738]Have you heard the language from OPEC lately? They have no intention of increasing supply. I don't see oil below 90 dollars ever again.[/QUOTE] OPEC is not increasing production. There is however an oil glut. Speculation and "political events" keep the price far away from the $80-$90 rahge crude should be at. Within the last 24 hours a missle hit a tanker off the gulf of Yemen."

AlfredSokol said: "The fact that oil moves so much on "geopolitical news" is getting a bit disturbing. It doesn't take much to move the prices up and I'm sure unsavory types know this."

rmelv said: "I'm sure it would be a very profitable operation to plant bombs on a pipeline and load up on futures contracts that expire in a matter of days. If your planting the bomb in the first place it would be stupid not to buy the futures. Or at least sell the information to traders."