GREY:TRIAF - Post by User
Post by
Steelhead15on Aug 28, 2013 12:18pm
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Post# 21703586
Why a cap at 2.80 - 2.90?
Why a cap at 2.80 - 2.90?Given the comparable metrics, there is no reason for the average investor to sell at this level. The flowing boe/d would place the value far higher. I just read Seeking Alpha and 95,000 per boe seems average for the area. $80,000 would be cheap. I don't know for sure if the writer is absolutely correct, but from what I've studied it seems correct.
Given those numbers are accurate, there seems no logic in selling at this price. This company is not in any financial difficulty. It is not under duress. There is no legit reason for TOL to sacrifice its value in a negotiation.
I'd hate to be a BIG PLAYER capping the price at this level. I'd fear exchange action.
Someone should write a book on boardroom games. I'd sure like to know what goes on during these deals.