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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Post by dbeaudeon Oct 12, 2012 4:40pm
319 Views
Post# 20479325

Crazy Valuation.....Crazy!

Crazy Valuation.....Crazy!

The current market cap of TID is ~$70 million. Their debt is $230 million. The EV is a mere $300 million less working capital of ~$40 million =~$260 million. The book value of their assets (vast majority of which is rigs) is ~$500 million.

They could sell the assets at book value, pay off their debt and distribute the rest to shareholders which would amount to approximately $240 million/347 million shares = 70 cents or 3.5 times higher than the current share price. Even if they sold them for a fire sale price of $100 million less, shareholders would still get 40 cents per share or double the current share price.

 

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