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Longview Oil Corp LGVWF



GREY:LGVWF - Post by User

Comment by terroiron Dec 31, 2013 9:35am
300 Views
Post# 22048008

RE:RE:RE:RE: vastly underpriced

RE:RE:RE:RE: vastly underpricedHawkowl,

Can't see that either, AAV is currently well into a "strategic options" process looking to enable the development of its assets. It is in a stressed debt position, and now has less cash flow due to the LNV dividend cut. Basically the LNV dividend carries its debt payments and the market value of the LNV shares covers its debt.

Apparently the bid period is over, offers have been received, and AAV is in process of decision making, and probably negotiating. Results are due any time.

The result may not be favourable to LNV in that a failure to find a buyer would suggest an open market divestiture of the LNV shares.

I have not seen any of the analysts suggesting a positive deal based outcome for LNV valuations.

Management does seem to be positioning for LNV's complete independence, and the recent CEO insider buy is very encouraging, although again it also says that management is not operating under blackout restriction, so they do not possess material information such as a deal in the works. But that could simply mean that he may have recluse himself from the AAV decision making by becoming dedicated to LNV some months ago.

Too bad because as Nawaar shows, the assets are strong.

Terr

PS I hate Stockhouse, no spell check, no message preview, and on most boards the posters have become a virus unto themselves as serious investors have fled.
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