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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by contragaloon Nov 20, 2013 12:27pm
156 Views
Post# 21923306

RE:RE:TID stock price is almost an option right now

RE:RE:TID stock price is almost an option right nowI agree with Dawson, this situation can not last for long time. One of the last pieces of the puzzle is to know the exact terms of the refinancing. Also, Dawson has to do a better job explaining how the company is going to rebuild its Ebitda. As you may know, drilling companies main value metric is EV/Ebitda. There are only two active analysts following Tuscany right now (NBF and Alta Capital, Raymond James dropped its coverage two weeks ago) and both target prices are the same, 0.15 $/share, mainly for the low Ebitda they are forecasting for 2013 and 2014. So Dawson has to forget that "Merry Christmas" he gave at the end of the CC and come sooner than later to explain his plan to rebuild Ebitda to levels that can be attractive to institutional investors. The thing with the TSX will be a drag for sure, but even if Tuscany is delisted is not the end of the world, it can be listed in another exchange.
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