Spartan Delta Corp T.SDE

Eric Nuttall has SDE on his new chart imho

[EstevanOutsider]

Blacked out as the cheapest name on the market at 2x ev/cf. Consider Spartan's large net surplus. I added more today. He use to love the Spirit River assets and was a fan of the old Spartan Oil Corp. Take a look on his tweet today and let me know if you agree?

[ValueCat]

some are claiming the blacked out name is GXE. why did he black it out anyway?

[EstevanOutsider]

Gear Energy Marketcap $108M Debt: $53 Projected net debt after debenture redemption: $8M So, $108 + $8 = $116M divided by $48.3M (projected cashflow @ $60 per co website) = 2.40x, impressive, but not 2.0x. So not sure how it gets to 2.0x.  Would love to see anybody else do the work. Spartan Delta has a clear path to 2.0x.

[hawkowl1]

Estevan did you account for all the shares Gear will issue to redeem debenture

[EstevanOutsider]

I assumed the dilution yes.  It brings Gear down to projected $8 million debt debt.  That brings them to 2.4x ev/cf for 2022.  Without that deal, Gear would be 3.45x ev/cf.  There is a reason he blocked out the left column.  The easy assumption is to assume it is Gear but I dont' think it is based on mathematical elimination. Do the math on Spartan and don't

[black4444]

Total debt at 12/31 is $46m + $13m = $58m   If debentures are redeemed for stock at  3,125 shares per $1,000 face then is debt reduced by $13m and total ouststanding debt is $48m   Shares issued for the debentures is about 39.7m shares; added to the existing 216.5m outstanding we get 256.2 total outstanding.   So the proforma debt is $48m and market cap is 256.2m x $0.50 or

[stockfy]

This is SDE's board, so let's stop talking about indebted GXE, which is primarily a heavy oil producer.

[filefish]

If it is SDE on his chart, then it does not appear that he has started buying yet. I would be surprised  if he does as this Company is way down on the food chain from his closely followed group of mid cap canoils. The companys float is too small to enter into  a large position without driving up the price substantially. But if he making a point that some are still selling at compelling

[EstevanOutsider]

Nuttall is already in. Look at the largest fund owners. I think Ninepoint uses RBC as a broker.

[filefish]

According to Morningstar, Ninepoint Resources Class Series F holds 700,000 shares as of 2/28/21. Is that what you are referring to? I thought Nuttall was managing  the NP Energy fund. https://www.morningstar.com/stocks/grey/dalxf/ownership

[EstevanOutsider]

Could be. Didnt know. Ninepoint has Spartan as a top 10 holding in their Resource Fund! Lots of volume this month. He could have added. Cant think of any other name that is trading at 2x ev/cf.