High Arctic Energy Services Inc T.HWO

Absurd valuation - $2.34/share Book Value

[Stonksonlyup90]

Charts looks like it could be nearing a breakout, waiting to see if volume picks up into the close.

Recent sale of Nitrogen business continues to validate Book Value (sale was slightly above book).

Keep in mind this $2.34/share of equity value DOES NOT include the $130M of non-capital losses!

Management seems to be actively looking to surface the value in the business.. lots of investors waiting for news on PNG, but I think stock will move upwards before the circular is released. IMO

[colourama]

Stonks, what kind of value would you assign the $130M non-capital losses? Now that the Canadian operations consist of only the rentals business, they suggest in their news release that they will be able to utilize them.

[Stonksonlyup90]

I would value it at a slight discount to the tax savings it would create. $130M at an effective tax rate of 25% would be $33M. Likely any transaction to surface this asset would result in a present value calc of that $33M... Even if you call it a present value of $25M, that's about $0.50/share. I think an acquirer could structure the corp to scale the rentals business and surface the value