GREY:AVNDF - Post by User
Comment by
Picker41on Feb 06, 2013 3:42pm
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Post# 20948258
RE: Good Merger
RE: Good Merger Joe454 - I have to respond to another of your serious inaccuracies. Market cap means very little when comparing production levels. Obviously, AVF will have positive working capital versus SGL's relatively high debt levels. The market is punishing companies with high debt levels, and companies with clean balance sheets are getting a lot more respect.
Compare enterprise value rather than market cap and you get:
AVF EV = $115 million
SGL EV = $561 million
You are getting 4.9x the enterprise value, and the resulting company has much higher debt levels which is likely much of the reason for the current price trend. Also, I think your production numbers are out. AVF will likely be contributing more than 3168 boe/d to the combined company.