Novus Energy Inc NOVUF

Possible takeover

[claritas]

Given that Canaccord downgraded to $1.15 and TD has a $1.00 target (as of Aug 26), I doubt that a takeover would provide much of a premium above these levels.  TD notes high decline rates and aggressive booked reserves.

With a current market cap of about $170mm and debt of $73mm, I don't see how any buyer would pay anywhere close to $500mm !  In relation to Yanchang's own market cap (using a rate of $0.14 per $1.00HK), I also don't see this number as being realistic.

Finally, everyone seems to be assuming that an offer, if they reach agreement, would be in cash.  It could be in shares or a combination of cash and shares.

The recent history of trading in Novus shares is reflective of the challenges that the Company faces.  That no better known names in the oilpatch have not surfaced (could still happen) is also not a good sign.

Let's see what happens, but I certainly don't see anything close to $2.00 happening, I would think closer to $1.25, if at all.

[sherbrooke1]

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[claritas]

I am not seeking that you believe anything, only to think in terms of facts.  I guess you have more data than the analysts out there (although no one is perfect).  The reality is that the share price, far from anticipating a high bid, has languished based on the Company's results which have been disappointing.  Of course, the Company's focus has not been to develop its