OTCPK:TMBMF - Post by User
Comment by
dosperroson Nov 19, 2016 6:04pm
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Post# 25485548
RE:TMB a turn around story.
RE:TMB a turn around story. There's a lot of money to be made. The prospect of shares in the buck range made sense when they were getting smoked with cost over-runs, questionable markets, and a 95cent CAD. It's all changed now. As of this week. Even the analysts don't notice yet, based on their modest hikes.
At the end of the day, if they got bought out tomorrow the buyer would make their money back in 4 years. (E.g. 800M to buy out, but we're earning 200M+) That's nuts. That's way too undervalued. They can make more than 200M a year now, and in a non-cyclical capacity (e.g. power.) So, it should be more like a 6-year payback since the fundamentals are better. The multiple used for normal firms is more like 10X but we're dreaming -- it is too ambitious for TMB status quo. Just using 6x, that would mean an EV of 1.2Billion. That would be ~700M in debt plus 500M in capitalization. And that would be $5 bucks a share.
I just don't know of any other names in this sector that could return almost 300% in a year or so... it's going to be exciting to see.