Someone's Doing the WRONG NAV MATH What's up with you people??? I don't think you know which way is up...
When a company consolidates 15:1, the amount of shares goes down from 106,645,576 divide by 15 = 7,109,666. (From here on this will be 106M/15 = 7M). THE NAV (net asset value) GOES the OPPOSITE WAY .....UP.....WHY?? because there are less shares to divide the assets into.
AT consolidation, the amount of shares go down 106M to 7M and with a NAV @ 0.42 before consolidation, the NAV now goes UP to .042 x 15, just over $6.00.
After consolidation, the Asset is still worth the same - just over $44 million, possibly higher when they drill more wells.
SHARES 106M DOWN TO 7M NOTHING ELSE CHANGES BUT THE NAV
ASSETS STILL WORTH JUST OVER $44M (106M X 0.42)
NAV (AFTER CONSOLIDATION) GOES UP = 15 X 0.42 = $6.30
I think that someone out there (?Brokerage House #79?) is doing the WRONG math.
Shares: 106M divide by 15 = 7M
NAV 0.42 divide by 15 = 0.03 WRONG
With less shares (7M) the NAV GOES........ UP 0.42 X 15 = $6.30 CORRECT
Lux....I think you've been doing it right...buying on the way down. This will pay off, anything under 0.08 is a good buy!
House # 79........BIG BIG BIG MISTAKE IMHO
BUY A NEW CALCULATOR, PEOPLE......READ ABOUT CONSOLIDATIONS AND NET ASSET VALUES