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Bri-Chem Corp T.BRY

Alternate Symbol(s):  BRYFF

Bri-Chem Corp. is a Canada-based independent wholesale supplier of drilling fluids and chemicals for the oil and gas industry operating from owned or leased warehouses located throughout Canada and the United States. It is engaged in the distribution and blending of oilfield drilling, completion, stimulation, and production of chemical fluids. The Company’s segments include Fluids Distribution Canada, Fluids Distribution USA, Fluids Blending & Packaging Canada, Fluids Blending & Packaging USA, and Other. Its business activity is to provide 24/7 coverage of oilfield chemicals in a variety of weights and clays, loss circulation materials and oil mud products to mud engineering companies who sell directly to drilling firms engaged by the oil and gas companies. Its subsidiaries include Bri-Chem Supply Ltd., Sodium Solutions Inc., Solution Blend Service Ltd., and Bri-Corp USA, Inc. Sodium Solutions Inc. is a fully integrated chemical supplier, toll blender, and packager.


TSX:BRY - Post by User

Bullboard Posts
Post by bigreturn11on Nov 09, 2017 9:34am
121 Views
Post# 26931852

BRY metrics tell the story

BRY metrics tell the story

Still unsure if BRY is undervalued?  I've crunched some numbers to validate my investment thesis.

Total Assets = $74M
Total Debt = $28M (excluding ~$10M in leases it is ~$18M)
NAV = $46M
Total Shares = 23M
NAV = $2/share
Liquidation Value = $1.50 (discount NAV by 25%)

So the current closing trading price of $0.78 is 40% of the liquidation value. 

Sounds like an amazing opportunity if they were about to shut the doors tomorrow. But this is far from reality.....

I expect net earnings of 18-20 cents in 2018. Likely currently trading at a 4 P/E based on 2018 earnings which make this the most undervalued O&G service stock I can find...even if they didn't hold a liquidation value of $35M or $1.50 in asset value per share.

Where else can you find a company that will do $120M in revenues at 8 to 10% EBITDA margins, with $46M in net assets and..... trading at a market cap of $16M. Please share if you know of others. 

 

How about the markets pay us to take their shares???? The markets can be so unfair sometimes. 

Bullboard Posts