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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by dbeaudeon Nov 02, 2012 11:32am
162 Views
Post# 20555042

RE: RE: RE: Ludicris

RE: RE: RE: Ludicris

All TID has to do is contract out their idle rigs (particularly the two brand new very high margin heli-rigs that the crooks at HRT defaulted on) and one could see their EBITDA at the $90-$100 million level. They could use $52 to pay down their debt and the rest to resume building more rigs. At $90 EBITDA, it would leave them $38 for maintenance growth capex. Even if their EBITDA was $70 million they would be fine as a going concern as they would have pleny for maintenance capex and work on cost reduction and margin expansion .....activities like they are currently undertaking with the rental equipment repatriation.

I am not sure about Q3 as it might show the impact of the crooked dealers at HRT and the two from Trinidad. But that is water under the bridge. That may get a arbitrated settlement with HRT next year which will be a welcome influx of capital.

From my perspective I see their current price to BV as about 63% ($326 millon/$495 millon) as I like to include debt in addition to equity. It could have been that they used no debt and issued more shares to pay for their acquisitons etc.

Still 60% of tangible book value is very undervalued.

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