Larry,
I would like to get your opinion on PDS. According to the magic formula site it has an earnings yield of 15, a return on capital of 50-75% and the PE is 3. Is this company a tremendous bargin or is there some reason that PDS deserves to be so cheap?

Jim

Jim,

The stock is a bargain, but I don't know if it's any more of a bargain than other oil stocks like FTO (earning yield 19%), HNR (earnings yield 30%), HOC (13%), EGY (17%), WNR (21%), PTEN (24%), etc. I don't care what its P/E ratio is. Earnings yield tells you the same thing that P/E does and does a better job of doing it.

And, technically, it's not nearly as strong as some of the above stocks I listed.

Larry