NET ASSET VALUE $ 1 PER SHARE (BUYOUT) Hello Everyone:
I want to thank Swisstime for his analysis, it truly shows that he understands how to value a buyout. There are a few things that investors should consider and why I say that LFD is in a very strong negotiating position. Firstly, they do have miltary generals on their board with connections to Kurds government so PSC will not be easily undone. Secondly, if anyone cared to read the PSC contract you will note that any default by LFD does not cancel the contract and, LFD can even extenting it by one additional year should it become necessary. Thirdly, both Stan Bharti and Soros are billionaires, they will not give the property away, either Soros will buy it all or, Stan Bharti will come up with the funds for drilling. Bharti gave away $ 10 million to charity in December, do you honestly think that he cannot finance this deal himself. Fourthly, Exxon, Chevron, Sinopec, Niko and other majors are hungry for a deal, so this gives LFD choices to force Genel hand. Fifthly, Genel is flush with cash $ 2.2 billion, they are owned by Rothschild whom is a trillionaire, so the idea that they will fool around with price so as to either lose the concession or leave the oil in the ground is foolish. LFD never wanted to drill this property. LFD management saw a great property, they did the minimum that was required to make it attractive. They filled their board of directors with key miltary contacts with Kurds and U.S. government. They attracted solid hands of Soros and other few firms to control share vote. This was brillantly played by them. The Genel presentation clearly shows that Genel is now acting as operator, they have a drill date, they have the funds. So a deal has been concluded, matter of reviewing it with lawyers, getting Kurds on board before making huge announcement. Those whom are in business know full well that you cannot put a buyout to a vote if it fails to cover you most important shareholders by giving them a nice return. Soros bought at 30 cents so a double or triple for him would be good enough to sell. Why in the world would he vote to sell for a loss. Better to keep the property, drill it and, make billions if that is the case.
JMHO