RE: What does 3 times cheeper mean?I am a shareholder in HRG as well, so here are the comps. In terms of float, its not 800 mil but closer to 250 mil shares. I think SMF is fully valued, while HRG is undervalued. Dont know how much cash, debt SMF has, but HRG has 180 net cash.
in terms of HRG vs SMF, 50% of assets are in russia while 50% are in Burkina so you can compare although I agree that the Russian assets should be discounted.
2010 PE:
SMF 25, HRG 6
2010 ev/ebidta
SMF 14.7, HRG 2.5
ev/prod
SMF 9.25, HRG 1.5
EV/Reserves
SMF 1506, HRG 250