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Do you think there will be a buyout option for the PNG business (for public shareholders) when the circular comes out ?.
IMO the valuation of the PNG business is the biggest piece of the puzzle. A modest valuation of $80-$100 million is roughly $1.65-$2.05/ share just for the PNG business, plus ballpark $20-25 mil for the Canadian business (they do have some real estate, team snubbing ownership plus the significant tax losses) and the 0.78 cent payout. I see no conceivable way the entire business is worth anything less than $ 2.6-$2.7/share at a minimum. This is still atleast a 100% return from current valuation which can be realized in 4 month time !!
Management said on the call that they do not have any details about a buyout option, but there would be a way out for those that wanted to sell. Anything more than this would just be speculating.
I don’t want to put an exact value on any of the pieces (other than the cash, of course) until more filings come out. That said I believe 100% upside seems conservative over any substantial amount of time.
Do you think there will be a buyout option for the PNG business (for public shareholders) when the circular comes out ?.
IMO the valuation of the PNG business is the biggest piece of the puzzle. A modest valuation of $80-$100 million is roughly $1.65-$2.05/ share just for the PNG business, plus ballpark $20-25 mil for the Canadian business (they do have some real estate, team snubbing ownership plus the significant tax losses) and the 0.78 cent payout. I see no conceivable way the entire business is worth anything less than $ 2.6-$2.7/share at a minimum. This is still atleast a 100% return from current valuation which can be realized in 4 month time !!
Hi Ansh,
Management said on the call that they do not have any details about a buyout option, but there would be a way out for those that wanted to sell. Anything more than this would just be speculating.
I don’t want to put an exact value on any of the pieces (other than the cash, of course) until more filings come out. That said I believe 100% upside seems conservative over any substantial amount of time.
Where'd you found the info that 55% of the company is owned by management and board? Thanks!
I found it on Atom Finance. ~45% is owned by board member Daniel Bordessa
Thanks mate.
Happy to help!