I take it you do realise that one contract alone with option is worth 70% of the market cap? Tell me aster, does your value of a company shift by the hour in tune with a share price or do you actually read the annual report? And yes we know trading is challenging.
Enterprise value: $453m
EBITDA: $80m
Trading at 5.6 EV/EBITDA is cheap by any standards. That plus EBITDA is most likely at the low point in the cycle.
There is a possibility of a capital raising to maintain debt at a comfortable level. Even so, if it was to happen it would be to shore up the balance sheet ready for the change in oil cycle.
At current prices it is a sitting duck if some conglomerate wants it for the back pocket ready for upturn. Assets alone, even if halved their value would be worth $1. A bid at $1 would not be out of the question and it would be very cheap at that.
For those willing to sit out the attack from international traders, a big reward is likely.
MRM Price at posting:
31.5¢ Sentiment: Hold Disclosure: Held
