OTCPK:MAUXF - Post by User
Comment by
winnipeg65on Apr 17, 2015 1:51am
218 Views
Post# 23639380
RE:If the deals goes bust, what is the downside?
RE:If the deals goes bust, what is the downside? Sir, you get my 1st prize for most important question to ask.
Problem is indeed there is no answer now. Only Q1 numbers can shine some light on cash flows at lower Brent and with the new pipeline. But there will still be some big unknowns like the huge tax liability, reserves vs production, OML-18, etc.
It would indeed be a perfect deal if fair value would be something like $ 0.60 right now. I would buy immediately. But Mart equity could also be very well be worth a whole lot less, and potentially zero. Don't forget the debt. That is of course reflected in the share price.
There is too little margin of safety for me right now but Mart could be a nice punt for speculators. It is an interesting situation nevertheless.
If the deal is off, expect some selling for sure depending on the amount of these 80cts 'merger-arb' speculators in the stock..