CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:Net Debt Calculation

[Calgaryrider]

Obligation, debt....same thing.   The explanation on debt should be handled in terms of a balance sheet is bang on.  How it's handled in terms of covenants is that the primary lender doesn't count it for a very good reason.....they don't care about share price, meaning after a debt for equity swap.....which would milder this stock.


i also want to point out that Ocean's numbers (some of them) are not that out to lunch.

he estimates a vale of $1,020m based on an 8.5 multiple.  I agree with that.
Do NOT add any value for NATO....it is a zero cash flow asset.
now, subtract the $625M in debt that was so nicely and accurately calculated for us.

so, asset value, net Debt is $395 million.   Divide by 186m shares and you get $2.12.

now look at today's share price.

if you're smart, you'll wait a bit further until they chop their divvy and writedown NATO like whoa, and swoop in and buy this under $2.00.   I've always maintained that $2 is NOT a bad price to buy, but just that there's a better opportunity in the headlights.