Q: SOIL has a ridiculously low PE. I can't see anything negative stated about the company. It appears it is going to earn a lot of money. Can I have your thoughts as to whether this is a compelling investment?
5i Research Answer:
The P/E is certainly low, but right now this is common in the oil and gas sector, as commodity prices continue to weaken. But SOIL has good growth, strong cash flow, a strong balance sheet and we think looks pretty good for the sector. Insiders have been buying. Its lack of dividend and relatively small size are probably the main drawbacks here.