Energold Drilling Corp EGDFF

RE: $23 million bought deal

[LTOWNER]

Called TD.  The financing is not open and appears to be already sold to institutions.  Scheduled to close in approximately 2 weeks so an overhang on the stock price, if any, will not last long.

Perhaps EGD will get analyst coverage as a result.

MDI conference call at 9 AM today.  Reported another record quarter & will provide forward guidance for the industry.

I do not know if the following article was posted here earlier.  It was written by Harris Kupperman, founder of hedge fund Praetorian Capital, in May 2011, with EGD stock trading at the $4.30 level:
 

https://adventuresincapitalism.com/post/2011/05/20/ENERGOLDen.aspx

 

"So what is Energold worth? Today it’s either trading for a high single digit multiple on rapidly growing reported earnings, or a slightly lower rate of earnings on standing still earnings. Pricing is about to accrue to the industry in a pretty remarkable way and it should be pretty clear that Energold will drill a whole lot more than a half million meters this year. Plug 650,000 meters at a $200 price into my model and you’re at
.75 a share, even before accounting for growth expenses. I’m not saying that this is my estimate for earnings, but I wouldn’t be surprised to see that be the actual number either. Could Energold be trading for less than five times standing still earnings? In Q1, the company grew meters drilled by 131% over the prior year. What is the correct multiple on the industry leader in a rapidly growing business? It has to be worth more than a single digit multiple, right? Get ready for growth and pricing power. There is a reason that Energold is my fund’s largest position."