Post by
BigA! on Apr 10, 2014 6:15pm
Ofirme & Bonjovi...
Curious as to thoughts on a buyout price, in relation to the company's proved reserves and land. We have total proved reserves of 160,518 (discounted at 10%), plus land of 89,700, less bank debt and working capital of 126,108 gives us 124,110 to spread over diluted shares of 222,033. This provides around 56 cents/share.
What metrics do you look at when evaluating a sale price, and what multiples do you consider?
Comment by
Catalac on Apr 10, 2014 11:57pm
Ya wade is pres and chair but there are four other directors and five other senior managers of this company. Firing the coach not the solution here.
Comment by
bonjovi501 on Apr 11, 2014 9:55am
Wade is not going anywhere as he is a major shareholder as well. I talked to him several months back and he is sure this will turn around and was very bubbly as he reminded me of a used car salesman. I wonder if he is still bubbly. That darn debt is the over hang here but not the final straw if he executes properly.
Comment by
BigA! on Apr 11, 2014 11:47am
Do you guys have a list of other companies that have been sold recently and the multiples they have been sold for? Are people paying NAV for proved at 10% discount, or perhaps more/less?