GREY:NOVUF - Post by User
Post by
Iching64on Sep 06, 2013 12:05pm
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Post# 21722936
more reasons why this deal stinks
more reasons why this deal stinksAn article by Canaccord dated August 23 said this about NVS.
"The stock continues to trade at one of the LOWEST multiples in our coverage universe amongst Juniors, DESPITE INDUSTRY LEADING NETBACKS, AND A DECADE WORTH OF DRILLING OPPORTUNITES, a strong balance sheet" and
NVS is " poised to GROW PRODUCTION PER SHARE IN 2013 AND 2014 BY 30% AND 32%".
So what the heck was this "value optimization process" about, and why was it even needed ?
They could have just let NVS grow organically for the next 2 years and ALL the current shareholders would have done very well.
If this deal goes through it is a fair judgement to say that the current Board of directors are incompetent.
Their own stated mandate was to grow NVS "by the drill bit", not a by selling it a price that is, as Canaccord says, "one of the lowest multiples" amonst Junior oil companys.
A betrayal of their mandate to shareholders, and a cash cow for whoever buys NVS.