OTCPK:ERILF - Post by User
Post by
Steelironmanon May 02, 2013 7:03pm
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Post# 21333166
Year end results & EIL potential
Year end results & EIL potential What's EIL worth: From 2012 financial statements, $7.2M with 193.2M shares outstanding. This gives a book value of $0.037. There seems to be a lot of outstanding revenue owing in their contracts, I hope it is all collectable. Sometimes extras are deemed to be collectable but the buyer doesn't always see it that way. EIL isn't meeting bank covenants either, not good news.
What's the best scenario. On a $100M of sales, the best they could look to make might be in the range of $5M$ to $7M. $6M in earnings translates to a $0.031 per share earning. At 8x earnings, you might expect a share price of $0.25. That I believe is the best we can hope for. This means waiting another year with good and progressive quarterly results in the meantime. Profits from the latest $30M ride won't be seen for close to 2 years.
I'm unfortunately in deeper than I want to be and have little choice but to hang on for hopefully a good ride.
Averaging down usually is a good plan but I think the risk is too high here.