Where is MRM going?, page-173

I calculate a different figure

There is no goodwill on the books and last year depreciation was $42m. Therefore EBIT approx. $40m less interest expense $19m = $21m NPBT or $20m NPAT (offsets reduce tax to virtually nil) EPS 5c

So the company remains profitable in what will be the worst trading conditions imaginable. As we approach year end FY16 oil will have turned and the next phase of exploration/production will have begun.

This is a situation that offers a calm head the opportunity to earn a fortune. The type of situation that was on offer during the height of the GFC.

Sure there is every chance it will decline further. Impossible to time as it is with every stock but at these prices it is not unreasonable to assume a 5x gain within 12 months. Allowing for fires sale on assets alone would clear the debt and present a $1 a share. Hardware alone is valued at $1046m.

Love these situations.