Plain an simply 16% cash return on assets is crazy returns for an oil company. This doesn't even allow for increased production as a result of re-investment, buybacks, possible dividends, inflation on oil OR another takeover bid at these levels!!!
Eden are a bunch of fools! They should have robbed the bank if they couldn't raise the money.
I wouldn't be surprised to see another party move in on AMU at these levels but even if the don't shareholders will have their capital back in 5 years (allowing for compound interest and no company growth) with a cash return of 16%.
The share will be supressed a little while disappointed sellers who hoped for a EDEN takeover sell the stock off.
I am definately holding and will buy more once I close on some other stocks I am holding.
AMU Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
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