Equal Energy Ltd EQU

NVA.TO study case....sells and falls

[parachutist]

In  conjunction   with  my  last post  below  about  the  reaction  of  the  market   if  EQU  manages  to  sell   something,   NVA.TO  is  a  must  see   case....

 

NuVista   announced   some  significant asset sales yesterday and it drops with  volume  today.......

 

This is my  concern with EQU .....Fingers   crossed the market  reacts  positively when a deal is  announced....

[dbeaude]

I feel that EQU is a different case. There are three logical options. Two of these (A and B) would be no brainers to yield a significantly higher share price than today's close in my opinion. The third (C) is one that the market may not readily see the value in and not bid up the share price sufficiently for us shareholders to celebrate (similar to NVA after their announcement). A

[Nawaralsaadi]

NVA sold assets at similar valuation to where the stock was trading (thus no unlocked value), NVA kept the same business model it had before, continued to be 70% NG with no dividend. Fundamentally, the NVA transaction has made little material change, the only positive is a reduced debt burden, but this was countered by a sizable reduction in production and the reduction in the asset base (a wash).