RE: shaking the trees
Not trying to shake any tree. I came across this 'enterprise value' information ... and upon doing so looked into what it stood for. Enterprise value is a much more accurate way of valuing a company over using a straight market cap equation.
Interestingly enough ... if you take the enterprise valuation as presented as fair ... then you can see that the company is being discounted by the market to some degree ... not alot ... but below enterprise value.
It's possible you think pointing that out is tree shaking ... but where were you when the TSX marker was being published ... clearly the tree was being shook by an insider at that time if you take the markers at face value.
The other side of it ... you can't be expecting a potential buyer or partner to be stumping up a multiple of the current enterprise value to complete the bulk sample without having a corresponding expectation that the cost of getting that to happen would be a multiple of that multiple in dilutive consequence.
Go look at what Kodiak did recently with MIKOH and tell me that isn't a replication of the Zapfe scenario for Dianor and at the same time quit trying to suggest that potential buyers'partners didn't do their due diligence on the agreements Dianor had in place with regards to finance and property ownership when looking at the prospect. Of course they were aware of what Kodiak was doing from the beginning ... is it any wonder no buyer or partner has stepped up to date?
TEC had this tied up so tight ... no other party would come in wholeheartedly until that agreement was extinguished ... would they?
Heck ... all that might be in play right now ... and it would be good to have that defined shortly ... however ... to think being acquainted with enterprise value is tree shaking ... give that a rest ... everybdody needs to be aware of the metrics involved in the business side of things.
Surely you're not sitting there thinking the EV is $250 million at present ...or even higher?
Enterprise value puts it at say 5 cents right (which is a premium to the current market cap) ... and a premium to that might get it to 6 or 7 cents on a takeover offer at this time going by what that info points to.
So if EV is any indicator ... YES ... IT'S A BUY if you believe a takeover is imminent and take the given value at 'face' value.
If your average is higher than 6 or 7 cents ... maybe that EV smacks you in the face ... but if you're buying at an average of 3 cents ... buying large gets you double your money on a takeover and ther's nothing wrong with that ... BUT ... if you're average is 0 cost ... free riding ... well ... it's much better than buying at 3 cents and definitely a better position than anyone over the 6-7 cent cost.
EV is definitley something for investors to think about ... and deal-makers certainly base offers on real EV's and not market enthused or depressed market caps ... although in the case of being depressed by market sentiment ... it certainly plays in their favour.
Do you dispute the EV?