Southern Pacific Resource Corp STPJF

Pi Financial

[monzie]

Pi Financial lowered their price target to 50 cents but reiterated a buy today

[JR5]

The next press release could come at any time and the half dollar a share could very well be in the neighborhood. Question is will it be an all cash deal? Deal or no deal this suspence won't drag on for much longer. Cheers, JR.

[monzie]

That's exactly it JR, 50 cents would put the enterprise value at roughly 800 million which seems like a minimum fair price to me.  At 24 cents we're currently sitting at roughy a 680 million dollar enterprise value. The debentures would be made whole and anything above that price would go directly to the commons and the beauty of it all is that the commons are the ones who hold the

[oilcansam]

im a little confused with your valuation.  are you saying .50/share after all the debt has been taken off.  i think there is still $400,000,000 in debt.  a share offering of a buck will just put us at break even ?taking care of the debt.I think there are almost 400,000,000 shares out there.  i am clearly missing something here??

[monzie]

Clearly math is not your forte oilcansam, I can tell what your agenda is but come on. 50 cents a share would be 200 million, debentures being made whole 172.5 million, total of loans 410 million. And the grand total is .... 782.5 million which is roughly 800 million like I said. Therefore a 49% stake in the company would be roughly 390 million. So where is the confusion???

[Duxing]

that is not 50 cents per share., Even though I like your deal, That is about 2bucks per share. Your problem is you mixed up everything. A deal should be based on your equity plus future grow potential, not your debt. The higher your debt, the less your value.

[Duxing]

sorry, based on your asset.

[monzie]

Actually Duxing I am basing it strictly on the enterprise value (market cap plus debt minus cash on hand). As explained on Investopedia: Investopedia explains 'Enterprise Value - EV' Think of enterprise value as the theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash. EV differs significantly from

[Duxing]

your calculation result is somewhat correct for estimate a corporation value. What I meant is you mixed up everything like terms. The base is the asset and potential capacity of making money. Potential I think is more important. Things useless is valueless.

[monzie]

I'm not sure what terms I mistook but okay whatever you say. All I said was that the commons should get 50 cents a share based on an enterprise value of 800 million, please forgive me professor I didn't realize how off my terms were. But then again for a guy who just came aboard a little over a month ago on the very day that STP got their new loan, with the most articulate first post ever

[Oilfascinated]

STP's mid-term value should be much greater than $2/share given the P,P,P.  This is a multibillion dollar field with a company that is having trouble getting out of the ground what is shown to be there.  Whatever happens to this company, once they, or whoever ends up owning this field, the oil will be produced for the next 50 years. 

[Duxing]

Things important is if you can make money by extracting the oil out of ground, not if you can just take the oil out. The tme you do not consider the cost is when you do something to conciliate your girlfriend.

[Backwardblade]

I wish!  I don't mean to pee in anybodys corn flakes, but before I go hoping that somebody is going to pay 600% for my stock, as is....consider this Reserves are awsome!  right up untill you try to get them out of the ground.  I consider the ICD's right now, and if they were working...worth .40-.50 c.  Going forward, we all project ALOT more obviously but that's a

[oilcansam]

well one way to look at it is the "on going " progect in the oil sands.  KNOC (harvest) is putting out 0.5 Billion just to start.  Nothing on top or well bores drilled.  Thats the price of a plant.  So i guess you can say that STP is worth at least that.  so that puts us just over a buck.  now we start looking at production and 444 MMb resources.  Dont

[Eyeinvestor]

data:image/jpeg;base64,/9j/4AAQSkZJRgABAQAAAQABAAD/2wCEAAkGBwgHBgkIBwgKCgkLDRYPDQwMDRsUFRAWFB0iIiAdHx8kKDQgJCYxJx8fLT0tMTU3Oi46Iys/RD84QzQ5OjcBCgoKDQwNGg8PGjclHyU3Nzc3Nzc3NzU3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3Nzc3N//AABEIABkAGgMBEQACEQEDEQH/xAAZAAADAQEBAAAAAAAAAAAAAAAFBgcECAD/xAAqEAACAgEDBAAEBwAAAAAAAAABAgMEEgUGEQATISI2dbPSBwgUFjJWlP/EABkBAAIDAQAAAAAAAAAAAAAAAAAEAQIFA

[Backwardblade]

Dude, trust me....I like that....alot.  I even want to believe it.  I have often found in the past a gross discrepancy in what a property is worth on paper and how that actually translates into a rising stock price as what is actually coming out of the ground is what matters.

[Duxing]

If this is what your investment based on, I bet you must own sunshine oilsands.

[Duxing]

Your calculation makes a lot fun here.