GREY:BLKWF - Post by User
Post by
seagoldon Aug 19, 2014 6:13pm
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Post# 22857720
TD - Spec Buy at $0.10 remains
TD - Spec Buy at $0.10 remainsScott Treadwell, research analyst at TD just released his notes on Calmena today.
"we continue to believe that the company's assets could deliver material upside to shareholders, however the risk remains that its lenders will force the company into CCAA, which could further erode equity value. We have updated our estimates but are maintaining our SPECULATIVE BUY rating and $0.10 target price."
He also gave a valuation on the assets. Saying that remaining assets could get $0.10-0.15/ share with net of debt repayment. I think that is where his $0.10 price target comes from. Total asset value is at $62M with $31.3M debt totalling $30.7M in equity value.
US Directional Drilling kits valued at ~$25M
Mexico Rigs (6) valued at ~$28M
Brazilian Rigs (1 heli, 4 land rigs) valued at ~$9M
Libya rigs valued at nil
Total Book Value of assets are $100.4M, TD estimates $62M is recoverable.
If mexico can get 2-3 more contracts by this year, this is will be the next one sold. Pretty much covers the 92% of the debt, the remaining debt ($2M) can be paid off easily through other means like financing, equity or other sales. But I think that would be most plausible sale.
If you can bare the risk, its well worth it. Valuation on assets exceeds debt by 100%