Hi old friend, I value the two companies, merged into one ,...

Hi old friend, I value the two companies, merged into one , north of $270M
PNX have been issuing new shares to retire old debt.(My interpretation)
There is some chance the share price could fall to $0.004
Buying PNX at $0.004 would be the same as buying KIN at 5.2c (ratio 1:13)
MC of PNX @ 0.004 = about $24M
MC of KIN @ 5.2c = $61M

TOTAL MC Combined would be $85M

Cash and cash equivalents of the two companies is about $90M, which I value at $90M.

Conclusion buying PNX at $0.004 is like buying a dollar for 94c. Plus you get the value of all their projects.

There is no chance of a takeover as 50% of both companies are owned by the same group.

Broker involvement is zero , hence broker coverage is non existent.

Sometimes the Market takes a long time to find the intrinsic value of a stock.

KIN currently has $66M in the bank probably earning 5% in 3 month term deposits. Earning $63,000 interest a week.


Cheers Old fella