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Tuscany International Drilling Inc T.TID



TSX:TID - Post by User

Comment by StompinTomon Jan 21, 2014 12:35pm
146 Views
Post# 22116103

RE:RE:RE:RE:109 Million shares, when are they being cancelled..

RE:RE:RE:RE:109 Million shares, when are they being cancelled..This is a true binary play; either they work it out and are able to divest themselves enough to remove the debt overhang or they are able to get their fleet working better to throw off operating cash to cover the debt servicing and get a longer term debt facility at a lower level.  It looks like a perfect storm of softening market, credit issues with customers and over expansion got them in the hole but Walter frankly has been through many rodeos and seems to be confident to work it out over the next 20 months.

This is not a quick flip.  And pinning your hopes on GTE as a takeout is unwise.  If I was GTE why would I want to invest in this mess; I may use them as a customer (which is why Scott resigned, I bet) as they have overlapping areas but I don't want to take on this headache.  You are getting some good assets (the book value appears in tact based on the Columbian sale) at pennies on the dollar but those types of plays only give you the margin of safety.  Someday it will pop or it will disappear into the ether but no time soon until the market trusts them again.  I have a nat gas play AXL that had to do the same; it eliminated its debt and is a smaller company but is throwing off nice cashflow but the market still needs to trust it again.  That is TIDs best case future.
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