OTCPK:ARNBF - Post by User
Comment by
teeveeon Aug 30, 2012 9:55am
275 Views
Post# 20278647
RE: So what's a good buyout valuation?
RE: So what's a good buyout valuation? It could be argued that Arcan or who ever buys Arcan would have to spend money on in field pipeline, roads etc. Yes, the debt has increased, but that is offset by the infrastructure assets, at least on paper. Unfortunately, the investment bankers give zero value to infrastructure and see this as a drag on future growth in the short to medium term so have moved on. On paper, the NAV based on recoverable reserves should increase with the ongoing de risking of land. However, in the short term, THE only way ARN's share price will increase is IF more than one possible buyer has interest. In the short term, I expect tax loss selling will come to bear this fall and expect ARN will trade under $1.00/share.