RE:RE:RE:RE:RE:Look at the fair valueI believe the borrowing capacity is based more on Reserves than the NAV of assets on the balance sheet. Last year ATH wrote off the Hangingstone asset impairment to zero value. Obviously Hangingstone now has substantial value and as you suggest maybe a much as $300mil in potential Reversal. This would go a long way to improve the ratios of Debt to Equity from an investor standpoint. I think these asset imparement reversals are done mainly at year end.
Maxmoe wrote: My estimate remains a $300 reversal of the prior write offs. Aka write up. Write up in NAV and book value, and reported earnings. It's only accounting just like the write off was, but it does reflect an improvement in the borrowing base. PLUS, the bonds are $USD so there will be, by my estimate, $40 million improvement in the $cdn cost of debt vs a year ago. So easier to pay off the $usd debt now vs a year ago.
filefish wrote: There is a good possibility of ATH's net asset value on the books being re-written upward if oil prices stay above $65 for some time.. This alone will give the stock a re-rate. Look forward to seeing a done deal with the refi very soon.
Chris007 wrote: Thats why cash flow provides a much more accurate picture when comparing these companies...plenty of non-cash items included in accounting profits. Most notably, those huge asset write downs when oil initially tanked, last year in march.
Obviously TTM p/e is going to look f ucked
Nothingmatters wrote: Misprices****
Nothingmatters wrote: Suncor currently has a p/e of 1400.. OBE 134... For NVA it is 1 and Ath is -2.34 Sometimes market mispriced things. But it does not take much time to correct them when the time comes. It is my opinion only.