Athabasca Oil Corp T.ATH

On a more positive note

[Maxmoe]

This stock has very very long reserve life. For the sake of analysis, using rounding, the Enterpise value is 500 million from Ltd and 500 in mkt cap = 1billion. With the same stroke of a pen that wiped out $500 million in assets in 2020, that asset write down can be reversed and POOF! Asset value goes from $1 B to $1.5 and that all is attributable to equity, not debt, so share price goes up by $1. Ho hum another double. AND if they pay down the $500 million in debt, the asset value is also still $1 Billion, but with no debt, the equity value goes up $1 to get to, ho hum, a double behind door number 2. OR if they pat down the debt AND reverse the write off the equity value goes to $1.5Billion with no debt, is $3 a share. YAWN! A triple. Now don’t get me going on cash flow yield or dividend potential.GLTA and do your own DD.

[cahclick]

  Ya but what about them hedges  

[ComradeKomissar]

Thanks Max. I had bookmarked an earlier, more detailed analysis of yours from way back, so people can see how you come up with $3. I am quoting it below. The problem is that "4 x" multiple assumption. We are in a time of multiple "compression" as Nuttsac keeps saying. I sure hope we get back to normal (4x) multiples soon.   Some fun with math I had some

[Maxmoe]

Multiple compression is buzzspeak. It simply means investors don't initially accept higher commodity prices as the norm upon which valuations should be based. It's a bit "cute" to call it multiple compression when what is happening is earnings or cash flow or whatever you want to measure is rocketing faster than the stock price because investors will not pay a big multiple for