GREY:SDRYF - Post by User
Comment by
tigris72pooon Jul 19, 2017 4:31pm
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Post# 26487619
RE:Updated edison
RE:Updated edisonThese NAVs and Price Targets are idiotic in my opinion. Edison has a revised RENAV of 67p which equates to a target market cap of US $162 million. They project that at the end of 2018 SDX will have $57 million of cash and CF from operations of $49.7 million. That suggests that the EV/ CF ratio at the end of 2018 will be 2.1X. For a company that is debt-free with significant high return reinvestment opportunities that is a ridiculously low valuation. I would think that a more appropriate target would be 4x but what do I know? That would suggest to me that a more reasonable target would be EV of $200 million derived from a market cap of $257 million minus $57 million of cash. That market cap divided by 187 million shs gives a Price Target of US $1.37/sh or 105 p. I think that a double in 18 months is a realistic objective and it could be higher if we get lucky with oil exploration or crude prices.