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Best Buy Co., Inc. is engaged in personalizing and humanizing technology solutions. The Company operates through two segments: Domestic and International. Domestic segment is comprised of its operations in all states, districts and territories of the United States and its Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST... see more

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Best Buy Co Inc > GROSSLY UNDERVALUED

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Post by camper244 on May 24, 2013 3:38pm

GROSSLY UNDERVALUED

cheer up folks, there is just one seller bmo nesbith for any number of reasons. I have added 40k in the last couple of days. Here is a post from Value Digger (Seeking Alpha) whom I highly respect:

Jion, After deep analysis as always, I switched to TID.TO (Tuscany International Drilling) from the main Toronto board. I added at 18-19 cents last week. I believe that TID is grossly undervalued for the following reasons:

1) TID trades as low as PBV=0.2 currently at 20 cents. This is dirty cheap for any value seeker.

2) TID has positive EBITDA that will grow much during the remainder of the year because the utilization rate is 81% in Q2 2013 currently, after the latest LOI's (2 more rigs deployed in Colombia). The company has only 7 rigs idled out of 37 rigs currently.

The utilization rate was 65% in Q1 2013. Apparently, this is a big improvement and the utilization rate is going to improve further in Q3 , Q4 as Brazil awards many exploration licenses this May.

3) The CEO is a Veteran of the drilling sector and he has created and sold 3 drilling companies in the past.

4) TID operates in Africa and South America where the demand exceeds the supply. These markets are not saturated like the North American market.

According to the annual reports for 2012, PDS (Precision) , PES (Pioneer), TOT.TO (Total) and almost all the oilfield services companies have significant growth problems because they focus in North America.

5) The energy companies in Africa and South America receive premium BRENT pricing which is another motivation for them to keep drilling.

6) High Insiders ownership (~20% currently). The French Maurel and Prom owns 30% too, and it has recorded at its books its investment in TID with TID's book value. That happened because M&P was paid with shares as part of the deal when TID acquired Maurel and Prom's African drilling subsidiary. TID has a book value ~$1.10.

This means that ~50% of TID belongs to strong hands.

The insiders have also bought even at 48 cents, according to canadianinsider.com

Regards,
VD 20 May, 10:30