RE: RE: Hey Rapid I have already shared why Tuscany is extremely undervalued at this price level. Do you think that Maurel and Prom that own nearly 30 % percent of the company (and have it as an asset on their books valued at investment value ($1.50/share) or at least BV($1.05) and Dawson who owns 10% of the company as well as other directors that own sizeable percentages of the company are not going to backstop this company. Even it you valued the assets at liquidation firesale level they would represent around $350 million alone which if net debt was subtracted would value the equity at 35 cents per share.
Take a look at my last post and go over the comparative numbers to a very closely matched peer in size Western Energy.
The risk of them going out of business IMO is zero and the market value of this company based on a proforma EBITDA of $80 million (at a decent utilization rate of 80%) and using 6 times EBITDA is $480 is 70 cents per share after net debt repayment. That is a 250% return and I would guess that these guys will find a buyer for this company as SA and Africa are real growth regions for oil and gas exploration.
Yes it is definitely a deep value play and definitely a great candidate for buy low sell high.