RE: RE: RE: RE: Risk vs Reward
Blueboy,
In valuing the company at $1.09 I give ZERO credit for the bluesky potential. I did not give them credit for 5 future years of drilling as you say, what are you smoking. I simply pointed out that their drilling is building more value in to the company than the cash they are spending given the valuable resource definition.
If you think the bluesky is worth zero then that is your perspective and you are alone. In valuing the company at EV only as you would have us do, you are basically valuing them at a liquidation basis. That is not appropriate.
We are trying to look at the company through the eyes of a potential aquirer. They just announced a further expanded drill program today. The huge number of holes they will be drilling for a few million dollars will add net value to the company, no matter what spin you put on it.
Given today's NR looks like the company is drilling like crazy to enhance the value of a potential takeout bid, given ramping up of the work program twice now I deduce that the company is expecting a buyout offer at any time.