A recent report published by the Cohen Independent Research Group, called Wall Streets #1 Independent Research Firm, rated Pacific Asia China Energy (TSX: PCE: Other OTC: PCEEF) a Buy. The 68-page research report set three wide-ranging valuation levels as price targets for PCE shares for the companys coalbed methane concessions in China. Considerations such as the wide range of the Guizhous abundant gas reserves, expected prices of natural gas during the research firms forecast period, and discounting factors, such as the stock prices high volatility, were included in their price targets.
PCE shares, which closed at C$1.16/share on nearly 131,000 shares trading hands on June 19th, were given long-term fair market pricing of C$1.96/share by Cohen Research. This pricing was under the most pessimistic scenario. The low-case scenario included a natural gas price as low as $275 per 1000 cubic meters, and included a discount rate of 25 percent on the stock price. Cohen also reported, in the report, that at the current market price, PCE is grossly undervalued.
Cohen Research wrote, As per our Base Case scenario estimates, the NAV of PACEs resources falls in the range of...
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