RE:FINANCIALS ?? Bever73 wrote: "For the nine months ended September 30, 2017 Essential reported revenue of $132.6 million, a 106% improvement from the first nine months of 2016. EBITDAS(1) was $17.5 million, or $22.5 million higher than the prior year period."
Ok Someone help me here , on the last Q report they made 17.5M in 9 months....so lets kick that up to 20M per year ...is that conservative and realsitic?
Looking at their balance sheet I see 165M (assets- liabilities)
165M / 140 shares outstanding = $1.17 per share
I also think they are likely to get most of their legal costs back for the packers plus ......likely not cetain ...
So I realize nat gas will be grinding down over the next 2 years and oil in canada might slow down a bit too..... BUT ....
there is no debt here so .....why so underpriced?? Can they not even make 10M per year if conditions deteriorate?? Seems like a freeroll here (invest with little to no risk) ...
At 10x earnings....IF they make 10M per year (in sluggish times) thats 100M ....thats their current market cap.
Then the assets we will discount at 50% ....165 x .50% = 82.5M
185M / 142M shares =
$1.30 Fair Value Extremely Fair
More than fair