RE:A bit of an explanationYes, what you described is enterprise value and it is actually not difficult to understand.
My original comment stands in that relative to where the company’s price has been the equity component has almost been erased entirely considering the equity component has traded over 20x the current value.
Spruce Point and the recent drama have taken advantage of managements misteps, cutting of the dividend, a move to US residency and accounting change to US GAAP and a company which is in many ways a project based operator (and, thus, lumpy numbers). They instilled fear and doubt with great timing and while I don’t care for their tactics, they have also possibly created a rare opportunity.
Once/if management can realize/execute the plan then the stock will and can justify a multiple of the currently depressed and essentially bankruptcy-priced stock.
Given the risk reward scenario I am in for a minimum 4-bagger. Anyone in here for anything less is simply a trader or speculator. It will take some time and marked execution from Maxar because despite all the issues the company can justify a much much higher valuation even now.
Worst case scenario this goes to zero. Best case scenario, this is a four bagger within 2 years. I take out my original capital and an additional 0-25% letting the rest ride fundamentals permitting.
This will be an interesting story to watch. GLTA.