Post by
lifeisgood1010 on Feb 23, 2024 7:47am
Income tax assets greater than the value of the SP
Good morning Hockeyz,
Could not agree more with you, but i wonder if this will happen.At double the actual SP
it would still be a steal for Atco.
If you had a chance to read Akita latest presentation, you will see that they are valuating
the MARKET VALUE of their rigs at $11.71
Akita actual estimation value of their 15 us rigs is 255 million us or 344.3 CDN
Akita actual estimation of their 20 CDN rigs is 120 million CDN
Akita as 39,650,191 shares outstanding so the actual value of their rigs is $11.71 VS
a selling price of $1.45
Take the value of their rigs,add the cash and working capital and substract
the total debt and we still get a value of $10.90 after Q3
Lets say you think the company is overly optimistic in the valuation of their assets
and cut it by whatever amount you want, you would still get a multiple time the value of the actual stock price.
I would understand the selling price if you would think that this company is not profitable and is
going under but that is not the case.
In fact, since the depth of the pandemic, this company as been improving quarter after quarter.
Once in a while, stock market doesn't make any sense and this is one of them
The disconnect is just to big even for a small cap.
As for major shareholders i wrote to Akita IR and they told me that
Linda Southern- Heatcott presently own 1,661,434 shares so your number is correct.
They also said that they expect 2024 to be a better year than 2023.
This, only time will tell.So far in 2024 they have had 8 to 10 CDN rigs working and
9 to 10 us rigs working.
My biggest concern is the low price of nat gas.If it stays low for longer, i wonder
if it will have a big impact on drillers.
In any event the value is there.I don't expect much upside mouvement in
the near term but i think that the risk/reward is very much in my favor if i am willing to wait 12 to 24 months.
Last thing, i was told that once they reach the 50 million$ level on LT debt, they
will strongly consider and NCIB.No wonder, if they think that the SP is trading at 13% of it's net assets value ($1.45/$10.90).
Have a nice weekend and good luck with you investments.