Good morning Blindpig,
Couln't agree more with everything you have written.
I presently own 97,600 Akita shares so probably a lot less than you.
The dual share voting rights is also keeping the share way under what it should be valued at.
For now, we probably won't see much appreciation in the SP.
But if and again that is a big IF, C.Dease and D. Reynolds statement of higher activity in H2
and 2025 comes to fruition, then, maybe then, we could see the beginning of a better valuation of our shares.
In the short term,this is probably dead money.
I was encouraged to see them turning a 7 cents profit in Q1 in what was a very slow drilling market.
Also, i was looking at the impact of the decrease in their debt level.
"In the first quarter of 2024, the Company recorded interest expense of $1,259,000, down from $2,231,000 in the same period of 2023 due to lower debt levels in 2024 at $70,000,000 compared to $91,620,000 in the first quarter of 2023. Also contributing to the lower interest expense is a reduction in the average interest rate of 7.64% in the first quarter of 2024 compared to 9.75% in the same period of 2023"
If they do get to their 50 million target by year end or early 2025, the impact on interest cost will be
an addition on EPS of 11 cents/ shares VS 2023
This is not negligeable for a company trading at $1.50
Again, i can see Akita earning north of 40 cents next year if activity pick up.
While there are probably much better investment prospects in the very near term, i still believe
that if things goes in the right direction for drilling activity, i could see my Akita investment
double or triple.
BUT THAT IS NOT FOR TODAY, NOR FOR THIS WEEK OR NEXT MONTH.
Patience can be very rewarding when you buy a well run company at a below valuation
to it's net assets value and earning potential.
Good luck with all of you investments and thank you for sharing you comments.
Sorry for all of the spelling mistakes , i am french speeking.