TRUE NAV IS $ 102 PER SHARE FOR LFDHello Everyone,
Now that we know how to value LFD, let the fun begin. My numbers differ from the analyst of Scotiabank. This analyst assumed that LFD would only earn $ 5 net per every barrel of oil for its 37% share.
I beg to differ. This amount of $ 5 net per barrel of oil is unrealistic. I am more comfortable using $ 10 per barrel of oil.
Per my calculation this is the Net Asset Value using a $ 10 per barrel of oil accruing LFD.
Assuming maximum success:
4 billion barrels of oil in place
37% recovery rate
1.48 billion barrels of oil recovered
$ 10 per barrel of oil of net profit accruing to LFD * 1.48 billion barrels of oil gives $ 14.8 billion in the bank.
Net Asset Value per share: $ 14.8 billion / 144 million shares o/s gives $ 102 per share to LFD.
What this means is that a $ 10,000 investment gives you about $ 3,000,000 in about 2 years.
Now tell me the truth, where can you make that type of return??? Name any other stock that can give you this!!!!
Now you know why SOROS loaded up and wants more shares at 65 cents and, why insiders paniced, bought a bunch at 30 cents and want more at 65 cents. Now you know why Ahmed plunked down 500,000 shares at 37 cents with no worry in mind.
Don't be stupid!!!!! This is opportunity of a life time.
PS: Numbers will go even higher if oil is place is higher and if recovery is better.
JMHO