P/E of 3, P/B of 1/3, Ev/ asset value of1/4As i feel i have said about everything on what i believe is a great opportunity
for an investor who as a longer vue than 1 to 30 days.
Here are my final comments on Akita.
The brain as is funny ways of working.Since 2006, many investors have lost $ with this
company and usually, when you lose $ with a company you don't buy in again.
Akita as never been that cheap in it's history.
My estimate of EPS for 2024 are
Worst case. About 30 cents
Best case, About 60 cents
Base case.About 45 cent.
It's trading at a p/e of 3.
It's trading at a pb of 1/3( and there assets have been writen off hugely during the covid debacle)
If you take for cash the last presentation from Akita management ,they estimate that their 35 rigs
have a market value of $11.71
For those who use EV(market cap less cash + L:T debt)
At $1.50, akita EV is $3.15 or one fourth(1/4) of it's EV.This is amazing
LT debt at year end should be about 60 million and below 50 million in 2025.
I may be wrong on Akita.It would not be the first time.who as a 100% track record.
But with these kind of financial metrics, i feel that at thse level this could be a very
rewarding investment for investors who are willing to let the story play out.
It won't be this week, probably not next month.So for those who are looking for
instant gratification, this is not an investment for you.
But for an investor who as an horizon of one year, well you know were i stand.
I think Akita is worth more than $4.and i am conservative when saying so.
Obviously, there are actual holders of Akita shares who think the exact opposite of me.
That's what make a market.
Again this am there was a block of 120,000 shares being offered for sale at $1.50
This will keep some investors away in the short term.
Finally there is 0 premium for a takeover on Akita because of the dual share structure.
With only 4% of the share,Sentgraf as 100% of the voting right.
Were they to eliminate that dual structure, the stock would double instantly but i am not holding
my breath for that to happen.
If and when my scenario plays out,in 3 months, 6 months or 1 year, the few who will have read this post will probably be on other board or will not remember it.
I was posting in the same maner on DRX board and i am still posting on it.
It took more than 2 years for investors to discover what i was saying.
I have not sold a single of my DRX shares and have more than quadruple my investment.
Will it be the same with my Akita investment?
Only time will tell.
I am retired and have been investing for the past 44 years and it's a hobby of me
to share my thoughts.
So good luck to all were it's in Akita or for all of your other positions
And for the last time sorry for the spelling mistakes i am french.
