Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Through its subsidiary, BPI Energy, Inc., BPI Energy Holdings, Inc. specializes in the acquisition, exploration, extraction, and commercialization of coalbed methane (CBM) properties across the United States. The company possesses rights to approximately 500,000 acres for CBM development within the Illinois Basin. Its holdings include a stake in the Southern Illinois Basin project, covering approximately 10,000 acres; the expansive Northern Illinois Basin project, which encompasses 353,531 acres across Montgomery, Shelby, Christian, Fayette, and Macoupin Counties in Illinois; and the Western Illinois Basin project, comprising 135,948 acres within Clinton, Washington, Marion, and Perry Counties, also located in Illinois. By July 31, 2007, the enterprise had identified 16,274 million cubic feet in total estimated proved developed and undeveloped reserves. Founded in 1980, BPI Energy Holdings' headquarters are situated in Solon, Ohio.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA.