is everyone selling to get into mxr, page-22

Orga, you are missing that there are two parts to the MXR relationship with ERO.


Firstly they own 30% of the Joint Venture...you have that bit sorted in your calculations.

Secondly, they ALSO own 35.4 % of ERO's shares (and its 70% share`of JV) they own a third of ERO itself as well!!

You seem to be missing this point in your posts.

These two parts combined mean they actually own greater than half of what ERO has.

Therefore, if ERO has a Market Cap/value of 90M then MXR should have 90M as well....its more or less a 50/50 split on ERO's properties.
They have just as much share to any future revenue from the ERO properties as ERO has, actually slightly more.

Now maybe ERO isn't worth 90M, only 60/70M....but whatever it's valued at MXR should be the same.


But there is a third factor to this equation...and it's a large factor.

The above figures only take into account the ERO properties.

We all know that MXR has many other properties....
once the value of those other properties is factored into the share price, logic dictates that MXR's market cap should be at least 1.5 times ERO, or perhaps double.

For now, I am waiting for the market to at least work out that the MXR share price should equal ERO.
Judging by the last couple of day's movement it seems the market is beginning to get it!
(MXR up vs ERO down.)

Perhaps the two share prices will cross in the mid-50's range, and MXR will begin to be sold at a higher share price to ERO from that point on, as should be the case now.

Hope this explains why MXR is so cheap....

particularly when compared to ERO.