ORLANDO, Fla., May 15, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has initiated research on American Energy Group, Ltd. (OTCBB:AEGG).
Clay Mahaffey, CFA, RedChip Research Analyst, wrote in the report:
"The estimated current fair value is the approximate average of several methods, and the $8.00 price target is in line with the NAV at 20 percent. Although an eight-fold price increase in one to two years seems very speculative, in most cases there are solid reasons this will occur for AEGG. First, the severe current undervaluation is due to several factors: operational delays, legal actions against the Company, very conservative communications policy, lack of awareness in the investing public, etc. The 2005 high of $3.24 was set the day the news came out on the Haseeb No. 1 well and has never recovered for the reasons given. For the most part, each of these problems has now been addressed. An increase from $3 to $8 would not seem unreasonable given the high leverage to new drilling seen with AEGG. We initiate coverage on American Energy Group, Ltd. with an Aggressive Speculative Buy rating."
To receive a complimentary copy of the RedChip Visibility initial research for AEGG, please visit: http://www.redchip.com/visibility/about.asp?page=requestAEGG_initial.
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RedChip Visibility Research Disclosure
The analyst contributing to this report holds shares of AEGG. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. American Energy Group, Ltd. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. AEGG paid RedChip Visibility $36,000 for the RedChip Visibility Research Program, which includes this report.