RE:RE:RE:tail wagging the dog if you look at the book value for BNE, it is in the range of $14 per share - and basically none of this is intangible assets - just hard , touch and feel stuff
if you give only a 20% premium to the actual costs of their reserves totals , you are looking at an adjusted book value for BNE of almost $20 a share.
based on the underlying enterprise value the diivdend yield is in the 7% range and i think this metric is more reflective of the risk profile UNLESS one thinks the differential is here for multiple years.
the other simple deduction from the huge spread between share price and book values is that these companies - CJ is in the same boat with a Book Value anywhere from 2 times to 3 times to current share price - should seriously look at small asset sale transactions to raise capital in the shorter term. there are always companies out there looking to get tuck-in transactions or move up the ladder from small producer to larger. as i pointed out earleir - BNE did this in 2016 to the tune of $50 million.
as pointed out by someone on the CJ board, some of these companies should look to use their balance sheet to fund diivdends for the short term and carry through this trough in the differential - at least imo!
gvfsdgbfsdgbfsa wrote:
Trader124 wrote:
not bad but the reality is the dividend will be cut. Cj another great company will cut its dividend. I never seen a company with 15% yield and not cut
Really?? I think you will find a few examples over the past 10 years. As someone has already stated, sometimes the market is irrational. Now is one of those times. Look at fundamentals.