Survival ModeWe are in the middle of an un-controllable War right now and their's nothing we can do. Even we can't fight these markets. The ultimate shaking of the tree. Hundred's of the Juniors that are without income, without cash are going to now disappear. As drastic as it is, we have to consider it to be a cleansing of the weak, poor, speculative companies.
We have income. We have valuable assets. We are not one of them.
Having said that,, I do believe this global slow down could potentially reduce our annual earnings to the $10-12 Million range. If this low ball figure is correct, I think we should still be a $2.50-$3 company once the market settle down. This also add's no value to our properties, which I personally consider to be the potential gravy.
The sad thing now is that multiples have retracted, big time. This mean's we may be faced with accepting a possible takeout offer of $4, where as 6 months ago, I would of thought $6-$8 minimum. It's an un-believably shaky economy now and I will be happy to see an offer in the $4-$5 range.
The US, Russia, China, Venezuela make for some really scary time's right now and for that reason; cash is KING. Because of this, we are having to ride out an un-foreseen storm. When it's over, I do believe we will be fine, however, it's going to be rough and it's going to require a reduction of our expectations.
Think of this, Petro Canada now trade's at 4-5 time's next years earnings, why should we be trading at a premium??
Long and strong I am. Unfortunately much longer then I anticipated.