GREY:AVNDF - Post by User
Comment by
Capharnaumon May 16, 2012 4:44pm
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Post# 19917842
RE: If you look at the balance sheet
RE: If you look at the balance sheet Yep but on a cashflow basis, the marketing company is worth more than its worth in assets on the balance sheet. Marketers trade at about 10x-15x dividend (which is usually 60-80% of cashflow).
That's why I said maybe they should split the marketer activities and the oil and natural gas. The marketer would trade above book value while the oil and natural gas activities would trade closer to book value. I believe the result would be at least $3.80 on a stock market value basis for both with upside (each shareholder would receive 1 share for the marketer and 1 share for the oil and nat gas business).