As a reminder Tva group has a book value of $9.1/share. If we get to just 50% of book value, our share price would appreciate by ~ 131%. Even so, at 50% price to book, the stock price would still be a bargain at a privatization level. Moreover, the real estate on the books are valued at historical costs and not marked to market to reflect current value. If the company were to monetize its assets, historical book value would get marked up to well above $10/share!
A lot of positives for the company.
- cost savings from layoffs (25-35 cents/share)
- Mels 4 to be accretive to earnings ( $5m+ in ebitda)
- possible privatization down the road.
The risk/reward set up is very attractive for Tva shareholders. I would be a buyer under $2 and not even think twice about it.