1.3 times EBITDA and the Rock Solid Balance SheetThe main sellers here are the 20 cent warrant holders. They are the bond holders actually. They got the warrant as a sweetener for the bond when PTA was a start-up business. Read the report.
After selling for so many days, they will be done soon, if they are not done already.
Due to them, the weak hands and the momentum traders sell too. They do not know what they sell, why they sell, as always. They sell because the others sell. Welcome to the herd.
The thing is PTA currently sells for just 1.3 times its 2014 EBITDA and the balance sheet is rock solid with zero Net Debt. In fact, the cash is DOUBLE the debt, so the net debt is Negative.
Among all the oil producers that drill ALL OVER THE WORLD, If you can find another growth oil producer at 1.3 times its 2014 EBITDA and a rock solid balanche sheet full of cash ready for further acquisitions according to the CEO, let me know.