Correct...they will need a clear margin over $75m...and not just for the sake of the exchanges entry rules, but for the Dubai and Abu Dhabi funds that will be investing.
I have said this before...everyone should study the NDO approach, which like the efforts of CVI, went far beyond pure asset managament and included all sorts of corporate manuevering, including at government level.
These guys are doing it right...which is why they get significant buyers holding, and even temporaries deciding to hold for a little longer given they are now comfortably in profit.
In my view, CVI has significantly more upside than NDO simply based on Cameroon, which will see them sitting on up to 10x NDO's proven hydrocarbon reserves reserves. NDO is currently valued over $300m (and has been for for about 12 months)...a number that would put $1 on CVI.
Can't even imagine what a Niger Delta position would do...let alone a decent hit at Catabola.
In fact, I will stick my neck on the line early and suggest Catabola will provide significant results...potentially enough to at least double current prices!
Time will tell.
If CVI were three companies...each one, at this early stage of their cycle, would see individual market caps nearing $50m.
We get all three and the associated economies of scale of single management/entity structure, for less than $75m.
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
