OTCPK:TNGZF - Post by User
Comment by
UglyTruth78on Jun 23, 2016 3:08pm
127 Views
Post# 24992274
RE:How to Value GRC
RE:How to Value GRCHow can you believe in the 0.41 BV of the investments given the amount of write-downs the company has taken within the last 12 months?
As of a March 2016 40% was deemed to by cyclical 36% neutral and 24% defensive, they are highly sensitive to the economic cycle. If you ran a cyclical business and the economy turned how are you supposed to run your business profitably on a go forward basis if you have to pay a 25% royalty to Grenville. You can’t.
So provisioning 40% for cyclical losses and 20% for neutral,10% for defensive you get a BV of the portfolio closer to 30.0 million or 0.28 per share book value and apply your FCF value of a 0.10 and you get a value of 0.38 per share.
Just so happens that it is the current price of the stock, the market is a clearly has gotten this one right.