Tourmaline Oil Corp (Alberta) T.TOU

Special dividend

[gilllis]

no one of us knows if there will be a special div paid based on the very good results announced in early March.  I personnally expected a material one to be announced this week but as l said on few occasions on this board (and also commenting on PMT and RBY), l expect a move by TOU on these 2 companies. If TOU choose to acquire these companies or others, the company's FCF will be used to fund these acquisitions instead of being paid as special dividend. But it will only serve to fund further special dividends in coming quarters.

[CriticalMind55]

So based on this post, load up on RBY; the premium paid for acquiring RBY will probably more than offset the forgone special dividend. Just speculating of course...

[CriticalMind55]

I prefer RBY over PMT, I think RBY was created by rolling out the jewel portion of old PMT.

[gilllis]

agreed but PMT owns 30% of RBY and while RBY market value is currently of 261M. PMT's market value (53M) is much less than its share of 30% of RBY alone. These shares alone are worth 78M$ and therefore PMT' share price is 40% undervalued not counting PMT's other assets.   

[CriticalMind55]

But PMT has many skeletons in the closet...

[gilllis]

yes but these skeletons only means pennies for TOU. If TOU wants to acquire all of RBY, it will have to buy PMT's 30% ownership and why not get the rest of PMT for free or almost. 

[CriticalMind55]

I have worked with PMT people, they called themselves "basketcases" in one of our meetings, their words, not mine...

[gilllis]

we'll see. For sure, PMT has not been a performer in past years and your colleagues at PMT were probably right to call it  that way. However, since they launched RBY and significantly improved their balance sheet, they seem to be on the road to recovery. And who is CEO of PMT??? Mike Rose's wife.... I am repeating myself but there were recent factors that lead me to believe PMT will