High Arctic Energy Services Inc T.HWO

Return of capital

[Ciao]

Good to see that they maxed it out at .76. Let's see how the parts trade after they are all distributed.

[BigWillie]

I can tell right now. For starters, HWO will tank immediately after the record date (July 9), down to one dollar level. Two little companies which were HWO, will try trading at 1$/share. Combined they will equate 1$/share of present HWO. Or 1.76$ if you add ROC. This is my projection. Both spinCo's will be in down trend, and it will take time, good balance sheets and dividends for a reversal.

[impega]

The spincos will each start off with about $11 million in cash with little to no debt. The PNG spin off will have escellent prospects out of the gate with FID just around the corner. The Canadian spin off has a massive tax pool available and excellent prospects to ramp up in a tax efective way. I see both spincos heading higher from the getgo.

[BigWillie]

we all understand that, but market doesn't care. Lets see how this drama is going to play out. I am long, with substantial amount of shares by the way. Why people sell after payout date I don't know, but it happen all the time. Why 90% of all IPO's with most excellent business prospects trending down for years I do not know either, but it happens. The only thing that plays in our

[RoboticSlave]

Maybe I misinterpreted but as it's "due bill trading" it means that you need to hold onto the shares until the end of the 17th in order to get the distribution, or is that not correct

[Stonksonlyup90]

Correct, must hold to distribution date to be eligible to receive the distribution 

[colourama]

Can you explain where your numbers are coming from? The share price isn't going to "tank" after July 9th, because the shares have a due bill attached until payment day on July 17th entitling them to the return of capital. At present the market values HWO at about $1.50/share. I would then expect the share price to be reduced by the amount of the return of capital, as would be

[AVALONSHARK]

1. I see both spincos trading at around 0.60-0.70 after distribution which is about $35 mil marketcap. 2. PNG business will trade at rock bottom level with almost zero revenue and a cashflow negative business - best guess is around $10-$12 mil. 3. Canadian business - initially should trade around $25 mil market cap. About $12 mil for Team Snubbing, $8 mil for the rentals biz and about $3-4 mil for

[lngisforme]

So you're saying after tax free distribution.  The combined companies will be worth $35 million.  As of March 31st, 3024 They have positive working capital of $30 million.  Cash balance of $20 million.  Tax loss pool of $130 million.  Plus cash flow and increases of about $3.5 million for current quarter.  That values.  High arctic rentals Delta rentals

[lngisforme]

Team Snubbing alone paid out $500,000 in investment income in Q1 of 2024 yet you're ascribing a value of zero dollars to this investment alone.  Yes management made a balls of the reorganization process and at some point soon they will be exiled to PNG to permit the north American business to flourish. 

[AVALONSHARK]

Valuation is an art, there is no perfect art and I am no artist... However, I have seen from experience, investors dont usually value cash separately form the business in the market. Even though the PNG business will have $10-$11 mil of cash, being a cash flow negative business with limited visibility of return to work, the assets are not worth much. Offcourse any rig deployment news will

[lngisforme]

So you're giving Team Snubbing investment a p/e ratio of 6  The value of this investment is more appropriately valued at a p/e of 10 with a $20 million dollar value.  Delta rentals $10 million HAES rentals $5 million Cash $11 million plus Cash increase and working capital this quarter Plus $130 million in tax loss pool Yes the Canadian business will be getting a rerate very soon

[colourama]

I think if there is a significant underevaluation by investors, then it will only be a matter of time before the Canadian portion of HWO is acquired - the tax pool loss alone has to be attractive for a company that can make use of them.