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Voya Asia Pacific High Dividend Equity Income Fund T.IAE


Primary Symbol: IAE

Voya Asia Pacific High Dividend Equity Income Fund (the Fund) is a diversified, closed-end management investment company. The Fund’s investment objective is total return through a combination of current income, capital gains and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of dividend yielding equity securities of Asia Pacific companies. The Fund will seek to achieve its investment objective by investing at least 80% of its managed assets in dividend producing equity securities of, or derivatives having economic characteristics similar to the equity securities of Asia Pacific Companies that are listed and traded principally on Asia Pacific exchanges. The Fund will invest in approximately 60-120 equity securities and will select securities through a bottom-up process that is based upon quantitative screening and fundamental analysis. Voya Investments, LLC is an investment adviser of the Fund.


NYSE:IAE - Post by User

Post by Gaswellon Feb 01, 2010 11:51am
725 Views
Post# 16739668

Octagon Raises target to $3.00

Octagon Raises target to $3.00

Major Reserves Increase

(Ithaca Energy reports in U.S. dollars; all figures have been converted to

Canadian dollars, except as noted.)

Event

Last year was one of significant events for Ithaca, and one in which the

Company achieved a significant growth in reserves, more than making

up for the sale of assets to Dyas in mid-year.

Proved reserves have more than doubled since the Dyas transaction,

and Probable reserves are up 2.7x. On a year-over-year basis, Proved

reserves are up 10% to 16 million barrels equivalent, Probable reserves

increased 49% to 21 million barrels equivalent, and Possible reserves are

up by 60% to 42 million barrels equivalent.

The present value of the 37.2 million barrels equivalent of the Proven

and Probable reserves, discounted at 10%, is US$768.4 million or $5.00

per share; we estimate that cash in the Company could be worth

another
.30 per share, for an approximate asset value of $5.30 per

share. Adding in Possible reserves brings total reserves to 79.2 million

barrels, with a present value of US$1.8 billion or $11.45 per share; $11.75

after including an estimate for cash.

Reserves at Beatrice and Jacky had a positive revision, reflecting their

better-than-expected production performance. In addition, new reserves

were added at Stella, Carna Hurricane and Harrier. All reserves are

royalty free.

Drilling of an appraisal well at Stella is anticipated this quarter.

Ithaca is debt-free.

Recommendation

As of this morning, despite the stock price increase of some 10%, the

Company was trading just over 2x this year’s cash flow estimate of


.60 and at less than one-third of its Proven and Probable asset value

estimate of $5.30. Clearly, this is one of the most undervalued stocks in

the sector. Experience has shown, that over time, stocks will trade to

their Proven and Probable asset value – the “hardest” valuation metric.

We are maintaining our BUY recommendation and increasing our

target price to $3.00 (from $2.00).

COMPANY BULLETIN

February 1, 2010

Overview

Ithaca Energy reported a major increase in

reserves for 2009. Proved reserves have more

than doubled since the Dyas transaction and

Probable reserves are up 2.7x.

2P reserves of 37.2 million boe, discounted at

10% have a present value of US$768.4 million or

$5.00 per share; 3P reserves of 79.2 million boe

have a present value of US$1.8 billion or $11.45

per share.

We are maintaining our BUY recommendation

and increasing our target price to $3.00.

Price $1.28 Market cap. ($mm) $ 2 07.7

Shares O/S (mm) 162.3 Net debt (56.1)

Avg. daily vol. 900,000 Enterprise Value $ 1 51.6

2007 2008 2009E 2010E

EPS (basic) -
.02 -
.24 -
.06
.15

CFPS -
.01 -
.15
.38
.60

Production/mm shares 0.0 0.0 26.0 28.5

P/CF n/m n/m 3.3 2.1

EV/DACF n/m n/m 2.4 1.5

Revenues (mm) $1.4 $3.5 $126.4 $132.9

Cash Flow -
.8 -$20.0 $62.4 $97.9

Net earnings (2.5) (32.4) (9.4) 23.7

Oil & NGLs (bpd) 0 0 4,227 4,622

Natural gas (mmcfd) 0.0 0.0 0.0 0.0

Equivalent (6:1 boed) 0 0 4,227 4,622

Quarterly CFPS (basic)

Q1
.00 (
.04) (
.09)
.16

Q2 (
.01) (
.00)
.12
.16

Q3 (
.00) (
.05)
.16
.15

Q4 (
.01) (
.06)
.16
.13

Changes to Estimates Previous Estimates Current Estimates

Q4/09 FY09 Q4/09 FY09

Revenue 42.0 126.4

Cash Flow 26.3 62.4

Net Earnings 1.5 (9.4)

CFPS (basic) 0.16 0.38

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