Tuscany International Drilling Inc T.TID

TID versus ML case

[perdikaoilgas]

ML (Mercator) found a buyer at 10 cents a few weeks ago when it was at 5 cents and had a forbearance period.

ML is in a worse sector than TID. ML sells copper and molybdenum. 

ML had  $210 million debt including the working capital deficiency. 

ML had not any HRT  or 2 heli-rigs to sell to reduce its debt further.

ML had also negative EBITDA !

ML  had  PBV=0.3 at   5 cents (15 million market cap with equity at $55 million).

Despite this, ML found a buyer at 10 cents.

I believe that TID can be acquired at much higher prices than 5 cents.
Simple math.

[perdikaoilgas]

I believe this ML case can help all understand the real thing about TID.  ML was also in forbearance period with an ongoing strategic review. ML had more net debt than TID.  ML had negative EBITDA with no light at  the end of the tunnel. Copper and molyvdenum prices are expected to remain depressed for several quarters.  Despite this, ML was sold at PBV=0.50. Its market cap

[veronikagermany]

Good catch! Thanks !