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ProShares Short SmallCap600 T.SBB


Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.


ARCA:SBB - Post by User

Bullboard Posts
Post by bot_feederon Jul 13, 2010 4:12pm
745 Views
Post# 17266516

FD

FDFully diluted they are at 152 million shares.

The new offering adds another 8 mil or so, so 160 million.


Now some of the 152 million are if I recall correctly options, which would mean a bit extra cash in the till if everything is exercised.

However, since those were at considerably lower stock price, a conservative approximation would be to simply ignore the cash associated with those.


So, we are looking at 160 mil shares, and cash of about 70 million once the new financing goes through.


With gold at 1200, they have about $2.75 billion worth of gold in the ground counting inferred, but only counting Back River.

Last I checked was some months ago Hackett had about $10 billion worth of metals, I think metals prices aren't too different now from what they were then.


Now let us assume the stock price is 3 bucks per share. (slightly on the conservative side)  160 x 3 = 480 million fully diluted market cap.

Subtract the 70 mil cash and you have an enterprise value of 410 million.


Ratio of in-situ metals value to entrprise value is 13 billion / 410 million =31


Well, no surprise, that is not the super value we had when stock price was in the 1's.


Another way to look at it is enterprise value per ounce of gold equivalent.  If Hackett has $10 billion of in-situ resource value, that is 8 million ounces of gold equiv.  Back river adds 2.3 million.

410 million enterprise value divided by 10.3 million ounces gold equiv = about $40 per ounce of gold equiv.

That shows they are no longer dirt cheap but they still have a lot of upside, especially if they can expand their resource substantially, which all their recent results suggest they CAN.


Bullboard Posts