RE:RE:RE:Frontera Energy BondsYeah Frank and Kcac put a high market value on the port in Cartagena which makes sense. Deep water port on the Caribbean/Atlantic side of the Panama Canal.
Frank figures with book value (the money left over if they dissollved the company, sold all assets and paid off all liabilities) would be about $29 per share.
Part of those liabilities are the bonds that they have issued. So they'd pay of all bond holders and still have $29 per share left over to be returned to shareholders. Kcac1 also has a high valuation for book value but I forget what his number is.
The reason that it is trading so low relative to book value is anybody's guess. My guess is a steep discount due to regulatory and security risk with these maniacs running around blowing up pipelines and power distribution towers. How ya gonna power downhole pumps if they knock the power grid out? Then you need pipelines to get oil to processing plants.
On the positive side, about one third of Colombia's export earnings come from hydrocarbon sales. The gov desperately needs the cash to finance all of its promises that they made to suck people into voting for them. So we'll see how Petro the pres handles it.