Post by
knicksman on Mar 04, 2014 2:24pm
Soooooo Much Upside
RPT owns a processing plant worth $20 million and oil reserves worth $65 million (on an NPV basis). To date, the company has paid off all of its vendor debts and only has the $1.5 million insider loan outstanding. In 2014, I am forecasting the company to generate between $4 million - $5 million of free cash flow (supported by discussions with management).
As the company sells its finished product in USD and buys its raw materials/equipment in USD the company has little exposure to the Argentine Peso (except labor which is not material).
With a market capitalization under $3 million, RPT should generate more free cash flow in 2014 than the company is worth. Or if the company were to sell its assets (let's say they sell their well at 0.5x NAV) the company is worth 9 cents per share (an 18-bagger).
The company should report Q4 results in April. The AGM is planned for June - I think we should get a share buyback announcement then (I don't think the company will buy back much, but I expect it would have a very positive impact on the shares...otherwise the company could provatize itself in a year). We may then get some monetization of assets then and move upward...significantly.
Comment by
dublebad on Mar 05, 2014 1:38pm
This post has been removed in accordance with Community Policy
Comment by
knicksman on Mar 06, 2014 11:33am
Looks like my post was timely :) The story should play out over the next 6-12 months with plenty of upside left for those investors willing to make a very calculated investment. Management owns 20% of the shares outstanding and are incentivized to increase the share price.
Comment by
TheRock07 on Mar 06, 2014 11:40am
Finally, we are getting some respect. see ya at 10 cents