OTCPK:VGIPF - Post by User
Comment by
InvestorSuperfanon Jun 18, 2013 5:24pm
105 Views
Post# 21539276
RE: The latest
RE: The latest Thanks for posting the link roscoe. I copied and pasted Eric Nuttall's comments on RPL from the discussion below:
Q) What is happening with the “strategic review” at Renegade Petroleum (RPL)? Should we hold on or sell out now?
A) I'm holding my shares and even bought more when the stock hit ~ $1.20. I thought PDP reserve value would serve as a floor value. they are more than 1 month into the process...the problem with RPL is not one of the assets, but is strictly of a balance sheet issue. management spent and incurred $40MM of expenses that they had not expected. this blew the d/cf to almost 3x......everyone that I have talked to agrees that there is much more value in the assets than the current share price/enterprise value. you need someone to come in that is better financed and then suddenly the overleveraged problem disappears and the real value of the assets can be realized....don't think the company exists in its current state. that is my bet.
Good to read that Eric appears to be sticking with RPL, and even bought more to lower his average cost per share. He seems to be suggesting that a takeover of RPL by a company with cash to pay down debt and money to finance the development of RPL's assets may be the best way forward. I guess the question is, what is RPL worth per share in it's current state, and at what price would RPL shareholders be willing to accept a takeover offer?