Crazy,crazy low valuation.This is a head scratcher
Q3 was a very slow activity quarter for the drillers.Even so, Akita made 10 cents on EPS.
Book value is $3.98.The rigs have been depreciated to the bone when covid stroke
and akita took a huge right down in their asset value
Management says the actual value of their rig fleet is worth $11.71
P/E is below 3(but their was a few special item included) so the real P/E is about 4
The company said in yesterday's reporting that we will see more activity in Q4 and that 2024
will be a good year.
Yet the stock trades at $1.60
This is a conundrum for me.ATB capital took their target to $3.75 from $4.25.
i believe it is worth much more than that.Even at $3.75 it would represent a 135% increase
Akita Drilling Ltd Price Target Cut to C$3.75/Share From C$4.25 by ATB Capital
For the patient investor who can wait for more than a few days/week i believe
that this stock will be a big winner when investors realize the value that reside in
akita's assets and the profitability that will emerge from stronger drilling activity.
I am not selling a single of my shares.No way