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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Comment by HHdocon Dec 27, 2011 3:33pm
247 Views
Post# 19352994

RE: Genel Valuation of LFD?

RE: Genel Valuation of LFD?

There have been numerous posts, using a variety of numbers and methods, which calculate a sell-out price to Genel between 20 cents to over 1 dollar per share.

In real world, these valuations must consider the unfortunate fact that lfd is now way beyond the "best before date"! They are faced with a 2 well drill oblgation and less than 6 months left on primary term. So we can all say that a 2011 Mercedes has a list price of X dollars, but we all know what happens to this price once the car is driven off the lot.

The company has no strength to negotiate a price anywhere near what the asset value may be.

Genel does not care what sorros or ahmed paid, or what the option prices are. It would seem that they are the only potential buyer and they also have the option to wait out the expiry of the psc. Likely the kurds do not want this to happen and so may try to grease a possible deal to take out lfd and end this embarassment as soon as possible.

Shareholders may not like any offer below 20 cents per share, but what will be our options next June? Also remember that kurds own a big chunk of lfd shares.

I am afraid that the longer it takes for an announcement will mean the worse the deal is for lfd.

Company management has totally screwed this up and incompetence will cost us all very dearly.

JMHO

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