Post by
dbeaude on Nov 15, 2013 11:19am
Thank goodness for the mis informed weak hands.....
Thanks for folks that are still willing to sell shares at these prices. Just creates opportunities for those that see th opportunity and are not fooled by a mandatory release by the TSX. The company now has an enterprise value of just $210 million and the remaining assets have a value of $330 million and a TBV of over 70 cents per share.
The company can now increase their focus in SA and move the rigs to where the business is located.
This transaction also cleans them up from a potential sale perspective as there are few companies that would want to buy a junior driller that is on two continents.
There will be a new credit facility announced soon....maybe on Monday. So now the company can turn its attention to getting the rig utilization and day rates up. All the company needs is to announce contracts for the two heli rigs and look out above. Likely one in Peru and one in Brazil
Comment by
RHertig on Nov 15, 2013 11:28am
I know the shares are a steal and way undervalued but...... Did they not say there would be a large improvement in Q3 and a much larger one in Q4. I might be missing something but this deal happened after Q3 and I see no numbers backing up the Q3 improvement promise. If they didn’t have this deal to announce at the last minute not one dam thing improved in Q3.
Comment by
dbeaude on Nov 15, 2013 11:47am
My recollection is that they said that things would be about the same as Q2 and I take that to be a little better or a little worse. It will be interesting to hear what their current utilization rate is
Comment by
RHertig on Nov 15, 2013 11:53am
Thanks, I know sometimes it takes patience to let weighing machine take over from the voting machine. But the wait can be ever so stressful. Especially when you keep wondering what can go wrong.