High Arctic Energy Services Inc T.HWO

Special Dividend?

[impega]

Do you think they will declare a special dividend when they receive the $28 million  from Precision this month?

[JonathanJSmith]

I'd rather have them bump up the regular dividend to what it was before the pandemic (~$0.20/yr). In fact, with the money they will have in the bank (~50MM) following the payment, they can afford a $0.20 regular annual dividend AND a one-time special dividend. We'll see what the BOD decides. Cheers.

[Possibleidiot01]

It's a high class problem for a company to have , especially a company that has  visible plans to grow that are  likely to happen.( few sureties in this life  - death and taxes) I wouldn't rule out a privatization happening here ; insiders , including Cyrus Capital  know this company best . If they bid $2 a share , that slightly under a $100 million , take out the cash

[Stonksonlyup90]

A bid at $2 would be astonishingly cheap!! Book value is roughly $2.60 a share - I would be holding for a privatization closer to Book. Company has a lot of tailwinds in the coming years, so certainly ripe for takeover.

[Possibleidiot01]

The math was easier to do ,using a round number. And $3 a share felt like an unrealistically high  number looking at a longer term chart ; (JMO)  a potential privatizer would like to have some significant upside. I see a potential  bid , closer to where you sugggest . But , let's use $3 a share or $150 million capital less the $50 million.  So $100 million less $45 million

[DudeRancher1953]

I hope we don't see a privatization here. There is real upside IMO and that won't be realized on an early sale. 

[Stonksonlyup90]

I do fear that the cleaning up of the org structure with the recent dispositions is foreshadowing a transaction in the near future (once the excess capital has been returned to shareholders). I am in the same boat as you, I'd rather hold for several years to realize the potential!

[impega]

Stonks the re-org made sense from a purely financial point of view. I believe they are saving $4 million a year in A & G costs alone in Canada. It allows them to focus on their most profitable operations in PNG where they have a siginificant advantage over any competition. It won't be off the radar for too much longer as it is now. Still time to add although there doesn't appear to be

[JonathanJSmith]

I agree w/the Dude. It makes no sense for management to sell the company at this stage; they're just getting ready to "beat past peaks" according to Maguire. If they decide to sell, the time will be when they're bringing in $40-$50MM of FCF. At that point they could fetch $5+/sh. Also, there's no way that Cyrus would be able to buy the company for $2-$3/sh. The minority

[Possibleidiot01]

I ,too ,am interested in how this plays out ; I do think this is a situation where under many different scenarios , shareholders do well or very well.. Hard to find this type of low risk , eventual at worst ,high return stock. Speaking of small/micro cap privatizations - anybody here remember an oil and gas service  company called Strad Inc?

[longrun86]

PNG seems to be going in the right direction. I hate the term "Sum of the Parts" but that really does seem to be where the market ends up with the most dislocation and High Arctic appears to fit this bill. I have wondered how the controlling shareholder group monetizes the company as it is pretty far afield. Strad was a very opportunistic buyout from the management team. Lyle has likely

[Possibleidiot01]

JJ Maybe I'm cynical but the tail doesn't wag the dog ; the controlling shareholder sets the direction of the company. I have no  particular insight into them but so far they have found  it rewarding to pay us , along with themselves. That could change? Or it may not ? As far as a class action , hmmn in Canada......... I just don't see it as being an automatic reaction

[JonathanJSmith]

PI, Thanks for the info. You're correct - over here it's much more litigious. Well, like you said, we haven't reached that juncture yet and I hope that we don't have to entertain any lowball offers in the near future. I have to believe that management has all shareholders' interests at heart and not just themselves. I'll give them the benefit of the doubt...lol. Cheers