OTCPK:AVEFF - Post by User
Post by
93Darkhorse93on Sep 02, 2017 2:26am
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Post# 26650110
Worth a 1.80/Share Based on Recent RigMinder Acquisition…
Worth a 1.80/Share Based on Recent RigMinder Acquisition…I found it real interesting looking through the Trinidad Drilling acquisition of RigMinder for 52M CAD all in. Given they had the confidence to make this deal this should be the base valuation assessed to oilfield service names. Granted the margin profile is a higher than Aveda but the base operating business and client base would be the same. It still is an oil field service name, they paid;
7x EBITDA and 5.0x Sales
I project Revenues of 200M and 28M in EBITDA for Aveda in 2018. Given a targeted EBITDA margin in the long run of 20% pulled all through gross margin improvement from reduced usage of third party contractors and pricing improvement just assigning half the value that Trinidad paid on an EBITDA figure (3.5x EBITDA) gets you to 1.80/share.
That is 300% upside!!!
On a side note; I thought it was very telling that rig count didn’t drop this week, given the market conditions could not of been worse with the hurricane in Texas yet they keep pumping!!!
We are going to make another run to 0.60/share (Traded there not even 2 weeks ago) in a real hurry as all the short-term traders have finally moved on.
Very telling to see all the new names on this board, it was very quiet with myself, Zadman and Tadjames on the board…
LONG