TID.T vs ML.T case (Must Read)Onthecase and all,
This is something that the judge MUST know:
ML (Mercator) found a buyer at 10 cents a few weeks ago when it was at 5 cents and had a forbearance period.
ML is in a much worse sector than TID. ML sells copper and molybdenum.
ML had $210 million debt including the working capital deficiency.
ML had not any HRT case that could potentially add more cash and reduce the debt further.
ML had also negative EBITDA !
ML had PBV=0.3 at 5 cents (15 million market cap with equity at $55 million).
Despite this, ML found a buyer at 10 cents (PBV=0.5). Its market cap is 30 million now and the equity is $55 million.
I believe this ML case can help all understand the real thing about TID.
Even at 10 cents for the common shareholders, TID has PBV=0.15 !!!!!!
ML had negative EBITDA with no light at the end of the tunnel because copper and molyvdenum prices are expected to remain depressed for several quarters.
Meanwhile, Colombia goes for a new record oil production, Ecuador drills Amazon, Peru and its huge reserves is the new hot spot for GTE (Gran Tierra), Argentina, Chile, PNG even Paraguay increase their drilling programs. Those markets are growing YOY and the potential buyers can deploy tuscany's rigs there.
Even Venezuela now that Chavez dies, grows and CET.TO (Cathedral Energy Services) established a new subsidiary there.
Brazil is doing OK and grows more slowly. But SA is not Brazil.