TSXV:PEC.H - Post by User
Post by
backflipson Oct 16, 2012 12:19am
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Post# 20487081
JUST A REMINDER ! RAISED 70 MILLION A $1.00
JUST A REMINDER ! RAISED 70 MILLION A $1.00
$70 million IPO at $1 in March 2011 reduced to rubble. Is it time to pick up the pieces?
Stockhouse Ticker Trax is equity specific research (Canadian listed and market cap < $300 million) published every Monday to paid subscribers. Our free Friday column may feature companies previously featured to paid subscribers (with a minimum one month delay) or discuss topics of interest to the general investment community and relevant to overall portfolio management.
Porto Energy (TSX: V.PEC, Stock Forum; 8.5 cents)
www.portoenergy.com
52-Week High: 89 cents / Low: 6.5 cents
Shares outstanding: 200 million
Financials end of February - Net cash approx. $7 million
If I was an investor in PEC from March 2011... I would be devastated! Porto raised $70 million at $1 per share in their March 2011 IPO but it has been on a downward slope ever since.
This would be a complete financial disaster were it not for the fact they have a huge amount invested in very expensive (and accurate) 3D seismic and a giant land position of 1.9 million acres with an avg. 99% working interest.
The current market cap at eight cents is $16 million, so if we pull out the cash, this land and seismic is only valued at $9 million.
To put this into perspective, Porto raised $70 million on this land position in March 2011 - that was without the experience they gained this past year and the extensive 3D seismic.
Read more at https://www.stockhouse.com/columnists/2012/jun/8/high-risk,-high-impact-eight-cent-oil-gas-stock#7czo7i3d8yFAu0TW.99