Post by
lifeisgood1010 on Mar 03, 2024 4:24pm
35 = 2
The value proposition in buying Akita at these prices is so compeling that
i couldn't resist write another posts.
If you look at the actual EV of Akita based on Q3 balance sheet and friday's closing price,
we get $128,147,302
Darcy Reynolds, the CFO says that the cost to build a AC triple rig is in excess of
$40 million US$ or $54 million CDN
Taking Akita Economic value (EV) $128 million / $54 million = 2.3
So Akita total rig fleet valuation at friday's close = 2 new Triple rig.
Akita's fleet consist of:
25 Triple (23 of them can perform pad drilling)
4 double
4 single
Ok, Akita 35 rigs are not brand new but they perform yearly maintenace improvement on them.
Anyway i look at it, Valuation does make any sense.
There is a HUGE DISCONECT between the value of their assets and the selling price.
We can argue that an asset value is only good if the company can generate a profit from it.
Well Akita as turn the corner is back on a profitable path and is starting to look like the
akita should earn at least 40 cents / share in 2024.
Right now, i can't find a single stock on the TSX were i am more bullish on it's 12 to 24 months price appreciation.
Comment by
pennydredful on Mar 04, 2024 3:53pm
Your reporting is getting a lot of traction today . UP OVER 10% !