Is selling something with $2.20 per share of cash in the bank...

Is selling something with $2.20 per share of cash in the bank for $1.34 rational? Strikes me that this is a great example of the share market giving you an opportunity that would otherwise never exist.

Assuming KAR were a private company, can you imagine walking into their offices as a prospective buyer, and being told that you could have the company for $330 million, but that there's $190 million more than that in cash in the bank.

Oh, and by the way, there's also approximately 84 million barrels of light oil estimated to be recoverable from the properties the company owns in Brazil.

I'd be thinking about writing them a cheque to buy the whole thing lock, stock, and barrel. Wouldn't you?

So, why not own a part of the business at the same crazy price, and see what happens.

There are no certainties. And, management may well stuff it all up and burn all the cash over the coming 5 to 10 years.

But, you're paying a very low entry price to speculate that maybe, possibly, something good might happen instead.

How much worse can it get in Brazil? How much worse can sentiment get on the oil price? How much worse can sentiment about this board and this stock get?

I don't know. But, I'm willing to put money on it being more likely to go from bad to less bad, than from absolutely terrible to even more terrible.