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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Post by dbeaudeon Jan 16, 2013 11:16pm
200 Views
Post# 20848357

big difference between book and market value

big difference between book and market value

It is true that the TBV of the company is around $495 million made up mostly by rigs. If one subtracts the corporate debt of about $235 million equals a net book value after debt of $260 million. On a fully diluted share basis it is about 70 cents. However, the liquidation value is considerably lower than the book value. So even if they only got 70 cents on the dollar in a liquidation event, on a per share basis it would work out to about 30 cents per share which 50% higher than it is right now. However, as someone mentioned the likelihood of bankruptcy is very very low so lets think positive.

Major catalyst would be reduction of debt levels down and utilization levels up.

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