Longview Oil Corp LGVWF

Valuation

[Transat500]

LNV worth more than 6.00$ range . With this sustainable juicy long term dividend , shareholders should expect something in the 8.00$-9.45$

LNV has a hight of 6.75$ within the last 52 weeks.

[jd43xl]

If you can support that claim, lets see some numbers. Otherwise, lets try to keep this board reasonable and honest. $6 is considered the bare minimum most shareholders would accept as a takeout offer. But $7 is probably the high, considering the fundamentals. The buyer has to be able to make money as well, otherwise why would they buy the company?

[ChungasRevenge]

What about the IPO's ("big money") in at 10$?

[konzelmann]

Well, if you run the numbers, $80,000 per flowing barrel comes to: 6000*80,000 = 480,000,000 480,000,000 - 115,000,000 = 365,000,000 365,000,000 / 47,000,000 = $7.76 So that would be a way of fundamentally supporting why we would get over $7. Realistically we may not. But it's not difficult to support why we could. I'm thinking ~$6 just because even though the fundamentals support a higher

[jd43xl]

You cannot simply slap a $80,000/boed on the company, as no potential buyer does that. It is all about cash flow, netbacks, opex, and the like.

[ChungasRevenge]

EPS        SHARE COUNT

[konzelmann]

I forget the exact number, but I am also pretty sure that NAV would point towards a value of significantly over $7.

[BlueCollar51]

That is one way to look at it but in my opinion a bit optimistic.   One would think that Advantage had attempted to find a buyer for Longview.   The fact that they chose to put their shares up for sale basically at the 52 week low suggests that they didn’t get much interest. The reality is that currently there are considerably more assets for sale in Western Canada then there are buyers.

[ChungasRevenge]

"Judging by where the SP is currently it appears that the market is not expecting the Premium that many of us are hoping/dreaming for or for a bidding war to break out." This stock should be trading at a multiple. The only reason that it's not is because it is a dull boring story that is not well followed and it does't have allot of  institutional ownership.  A

[Nawaralsaadi]

It is vital to highlight that Advantage was not interested in a share deal. Advantage wanted/needed the cash to sink in their Glacier NG project. Also after having been in contact with the management of the company over the last few months/weeks/days, I don’t believe there was a serious effort to liquidate LNV as a result of Advantage’s review process. I guarantee if a deal was to take place for

[ChungasRevenge]

That is fine for you! You avereged down. The assets are still there regardless.

[Nawaralsaadi]

This has nothing to do with me averaging down; as a matter of fact this has nothing to do with the buying price of anybody on this message board. This is about the current value of the assets based on what we know about them today, this is not a static situation, the IPO took place 3 years ago and a lot of facts have changed. Regards, Nawar   

[ChungasRevenge]

"this is not a static situation" YA!!   At the time of the IPO WTI was 80$ per barrel

[Nawaralsaadi]

Chungas, you need to go check their financials and check their realized prices for 2011. Anyways, the facts are what they are, and I don’t have the time/interest in walking you through the valuation process beyond what I have already stated. Regards, Nawar

[konzelmann]

Well, Advantage got taken advantage of and if I was an Advantage shareholder I would have been very frustrated with how poorly they handled their sale of Longview. They also took below market because they were desperate for a quick cash only deal. They had their backs against the wall and there were many reasons why they got far less than they should have, not all of those reasons should