Mart Resources Inc MAUXF

Discounting the future...finally

[dr_airtime]

Seems to me like the difference between the selloff today and our last couple in the fall (intraday sub $1.30 after Q2; intraday sub $1.50 in Mid Nov) is that most shareholders finally understand the potential of 2013 and are willing to hold so stock is discounting the future rather than the current two month no-production downtime. This is a step-change IMO.

That being said, I was hoping for some sub $1.50 shares even though I don't need to add but setlled for $1.54. If there wasn't a larger capitulation today then it's gotta be the bottom.

At .60X Cormark $2.50 target and .68X NPV10% per last year's 53-101 whcih is $2.25 based on outstanding shares. Cormark's gonna raise their target to at least $3.00 next year. Me like.

[bakken13]

I doubt most investors realise what 2 months of lost revenue will do to the Q4 numbers, until it is staring them in the face. When the actual news comes out, the reaction will be severe.

[mjh9413]

Bakken, MMT can even be cf positive from just one month's prodn at 6,600 or so boepd average for the month and only a minor, relatively speaking, net loss. They had about $35MM net cash/cash equiv at Sep 30 (incl even their tax liab) and have october's net revenues, so after the coming div they are still cash positive. Pipeline materials due to arrive Dec and so I cannot see Armageddon

[grandpama4]

I agree cash flow not a problem as MMT have also collected most of their receivables and paid their payables giving them a very strong cash position. They will have to support new receivables once the oil starts flowing again however i am sure terms can be arranged during this period. I agree Q4 will probably be cash flow neutral and if all goes well should have a great first quarter. IMO

[dr_airtime]

Good thing is that next financials will be Year-End so Q4 will be lost in the mix unless you go digging through the MD&A which I would say about 5% of investors do. Q4 will have to be inferred.

[bakken13]

Yup, always good to bury the bad news.