Tuscany International Drilling Inc T.TID

TID and SA: Bullish article

[veronikagermany]

New article from the Seeking Alpha author who recommended Surge Energy below $3.5

https://seekingalpha.com/article/1512702-which-company-will-acquire-this-bakken-asset-of-the-williston-basin?source=yahoo

After selling SGY, he switched to TID and he remains strongly bullish on it.

[veronikagermany]

His  long  position  on  TID  is   disclosed   at  the  comments  section  of  this  article.

[D60510]

Comments as follows: As I noted above, I sold Surge Energy (ZPTAF.PK) at an average ~$5 to lock a 60% gain and switched to another grossly undervalued company from the oilfield services sector. This stock is Tuscany International Drilling (TID.TO) from the main Toronto board. In US, it has the ticker TIDZF. I believe this stock can rise more than 100% from the current levels during the

[BigA!]

I think the Author is underestimating the refinancing issue. It seems to me that he is relying too much on increase in utilization rates and ignores the fact that an increase in these rates will not produce enough cash flow to repay debt, and I am talking current debt due within one year. Even at only maintenance CAPEX and a low amount of working capital investment, there does not seem to be

[veronikagermany]

Firstly, I disagree with your   EBITDA  theory.   TID  produces  enough  and  growing  EBITDA  effective   Q2   2013  (thanks  to   the  increasing  UT)  to  pay  the  first  installment  in  H2   2013.   Secondly, most  investors  want  to  read  

[rapid_fire_]

This post has been removed in accordance with Community Policy

[BigA!]

Veronika,   I welcome a detailed breakdown of your EBITDA analysis into cash flows for the next 4 quarters, an analysis of the debt coming due, and a tie in for cash flows and debt pay down. Going back and forth on this board with  no concrete numbers to back up our arguments adds no value to readers. I will post mine here this weekend and hope you do so as well. I am always looking for

[RiskyBiz39]

Finally someone posts the facts and he is right.  Big debt payment in Jan 2014 as well.  4 quarters out , TID Interest will be above 10%.  So throw that in on the numbers and see if you can cover and reduce any debt with out asset sale.  Will be hard to get rigs moved out of Brazil..To bad this blow up there will most likly postpone a settelment on HRT rigs. They really need to

[BigA!]

I personally do see potential for upside at this point but I think many readers may underestimate the debt burden. I view Tuscany as an event driven situation, with current drive coming from something that will show investors the balance sheet is getting more healthy. Yes the increase in UT will increase health, but we need more certainty. My hope is that, given Dawson's years of deal making