RE:RE:RE:RE:Regardless of What The Share Value Is UpHow are you laying out your calculations??? If going by 180 million in up front cost and if using stockhouse of 120 million they have 116 million that works out to $1.5 without using the 30 to 50 times earnings. Now let me use the ridiculous 500 million shares. When I do that you have 180 million divided 500 million outstanding shares to up front cost that gives you .36 without factoring in the multiples on revenue. I will use 10 times right off the bat you have $3.60 forget using more to the earnings. I calculate total revenue divided by total outstanding shares and 10 to 25 times earnings. Now what I have written here is going on the basis that the company has looked after all capital costs through the funding, has established their cost structure depending on the amount of barrels smaller operators are producing on a daily basis but if there are costs to the company what I have put up here has not accounted for that.
I am not disputing the contract basis at all but if the company has 0 costs has established the up front costs and all the oil producers are flipping all costs the company is not putting anything in as it doesn't look like that is being done then as I calculated above is how I usually calculate unless any company has deficits or not. If companies have deficits and EBITDA is being used I usually calculate 2 to 4 times EBITDA value if positive if not I see the stock at the value of contract divide by outstanding.
If the company is profit than I take the profits and multiply 10 to 30 times earnings.
Let's assume the .36 and it is EBITDA positive then my calculation would be .72 to $1.44 but that is on the basis of 500 million outstanding shares.
So I am not sure how you are calculating what you got.
As far as everything else prior to contracts we will need to wait and see. As far as being bought out for low values why would the company accept a cheap value of $10??? If the company is getting strong amounts of contract it helps smaller oil and gas producers there is no sense selling to low ball offers. And given we are only looking at one sector and the company can corner others why on Earth will they take $10??? If there are no to very little contracts that is different but given there is a huge need and the whole sector is under the gun and the tech is all that we see in its ideal state I think low buy out is actually extremely low possibility. Geoff called the oil and gas sector the low hanging fruit not as an insult to it but the most readily one to apply the tech to and then adapt it. If the company had no desire to get into other sectors and focused on oil and gas only I would be more inclined to believe it is looking for a fast and cheap buyout but because it is looking at other sources I don't buy what you have in your head convinced yourself of a cheap buyout. I will tell you one thing I will be thoroughly disappointed if the company even entertains anything under $25. But like I said anything tabled less than $40 I will vote it down.
All I can say is time will tell all things. Thanks for the link that is extremely useful and very interesting. Again I am not here to be right in any other way other than wanting the best possible share value and anything less then an absolute lowest $25 as I said I will be thoroughly disappointed but no matter what vote down as I said anything below $40. Just sharing thoughts and time will tell all things but I absolutely disagree with you on the share value prior to contracts as well as buyouts but I don't disagree with you that the contracts are necessary for higher values never have never will. As far as calculative values I have literally stated how I calculate.
If in deficit no EBITDA contract value divided by outstanding shares. Negative EBITDA equally tough although share values tend to go up even on the negative. EBITDA positive 2 to 4 times earnings straight profit 10 to 30 times up. EBITDA is in my opinion a step towards overall profitability and shows the functioning health of the company with a healthy cash flow but not quite overall profitable when companies are profitable it should also factor in all interest rates taxes depreciation and amortization which the EB part is earnings before all that. You need to take all costs so EBITDA is a step towards all that and why the multiplier I have seen is usually 2 to 4 times net I go on positive not negative although the share values still tend to go up on negative EBITDA it is still moving to profitability.
Anyways thank you so much for the link very interesting!!!
Good luck all.