Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Post by JackDeeValentinon Jun 08, 2016 7:46pm
213 Views
Post# 24948686

Jack does sound like a broken record

Jack does sound like a broken recordAssets are very solid, some of the best 

Bottom line is if you find a great real estate rental project to buy with a 30% annual return and your cost of capital is 40% then it doesn't matter how good the assets are

Alta had a report out today showing a list of mid and large cap names at 13X, 14X, 15X EV/DACF with plenty of spare capacity on line (low single digit debt cost of capital) and high single digit equity cost of capital

Unfortunately our stewards of capital at RMP (I'll leave out the name of that famous female singer) do not know how to calculate cost of capital, don't really care about economic value add, have limited liquidity, have pushed back on when takeover interest was presented (at much higher prices) over the past year.

I know these people, they are arrogant, think they are doing the right thing, and when things go wrong for people like this they go into a shell, will only listen to themselves, and then lose the support of all institutions.  Buyside and Sellside.

You own the stock down here (they have 4 of the best wells in Alberta based on 12 months of production) because top tier assets being mismanaged from an equity and enterprise value creation perspective because in many cases like this the equity value eventually moves closer to the asset value.  Whether it's an activist, a takeover, or a well capitalized partner that dedicates a large chunk of capital andstructures a partnership (working interest structure or wellbore structure) to fully develop their runway of economic prospects, the equity appreciation should take hold at some point.

Take these board posts as a grain of salt but I know this team, know what their current mindset is (not exactly healthy when it comes to shareholders and a bit desperate),  I know the sellside analysts and some of the previous investors.  Many  of these posts (outside of the sarcasm) come from numerous and recent conversation with others.

Hold your nose and own some. But it will take some change for the enterprise value and stock value to close the gap with the current share price.  
<< Previous
Bullboard Posts
Next >>

USER FEEDBACK SURVEY ×

Be the voice that helps shape the content on site!

At Stockhouse, we’re committed to delivering content that matters to you. Your insights are key in shaping our strategy. Take a few minutes to share your feedback and help influence what you see on our site!

The Market Online in partnership with Stockhouse