Athabasca Oil Corp T.ATH

Short term trade

[ManitobaCanuck]

Sold 50k Baytex today at 4.95$ and bought 200k of this at 1.24$.
Fingers crosed..
I think we will see this at 2-2.5$ soon .

[Beakr123]

I just took up a small position this morning and may look to add more. This looks like it may be a good candidate to be taken out. Thoughts?

[pierrelebel]

Beakr123 asked "This looks like it may be a good candidate to be taken out. Thoughts?" Its best assets are the accumulated tax losses. From the company: '...The Company has ~$3.2 billion in tax pools, including ~$2.4 billion of immediately deductible non-capital loses and exploration pools..." I am a shareholder and expect to see $3.00+ per share before the end of 2023.

[Beakr123]

I was reading that earlier today, quite substantial. Birchcliff was also another company that had a large tax pool available however it doesnt seem like these generally show up in the valuation of a stock. Can you shed more light on the advantage of these tax pools? I assume its a great way to offset the taxation of the increased profits we've seen this last year and expect to see moving

[elducky]

It's the profit a company can have before paying any taxes on it. So ATH isn't paying income tax on the next $3.2B in income, saving themselves about $700 million at current tax rates. It will be a lot of years for ATH to earn that much though. Someone bigger could buy them out and use it all now. That $700 million is roughly the current market cap. Someone could take out ATH, pocket the

[Beakr123]

Thank you elducky! 

[masfortuna]

? That is correct.  You have explained the benfit of the tax pool.  Analysts DO talk about them but DO NOT factor into the valuation of a company.