Conversation with management.I was able to have a Lengthy conversation with management. Poydras has had growing interest in Investors relations, with days of presentations recently on the east for interested investors. The tone of the parties that attended were positive, I was told.
Management is still aiming to keep growth high in 2017 with a large pipeline of opportunities available. Speaking to my previous post regarding to being undervalued, Management did not express any thought of going private and are focused on executing the business plan. Several funds at the investment presentations Were very pleased that the 30 mil was refinanced from what I was told.
It is very disappointing that this story in listed on the venture exchange, both missing out on an American dollar valuation and the record highs of the market. Poydras has all of its interests in markets that have a reflection on the oil price. 2015/16 was one of the worst in oils history for the region and with a little recovery recently the revenues per machine could increase significantly. Also with the new trump administration planning income tax reductions an increase should be priced in. The Venture exchange is literally the worst place for this play to be, we need another Tonkawa type placement or two and to move up to a big boy exchange. Tonkawa for those who remember is half our Ebitda.
There are three ways this can all play out,
1)the bashers are correct and we are going bankrupt
2) additional machine placements will increase share price with reflection of current valuations (ie Ebitda 5.5x
3) additional placements will have no interested or price reflection as the past placements have and a competitor will take this play out at a low valuation.
given the days of investors presentations and the low valuations the share price is currently trading, any interested fund would have to raise the price significantly in order to gain a descent position. I know Macy has stated to not have to dilute further and I really hope at these levels no new party will be given an opportunity until at least .90 US if they want a equity stake.