Far too much effort and stress worrying about the nuts and bolts on the aircraft carrier.
lol...it's a bloody aircraft carrier!
Always difficult to work out value equations in these types of transitional plays, which is why I do my best to dumb it down to some form of common denominator.
For me this is obvious...$1b in he hands of a highly credentialed management/expert advisory board.
In essence, as I see it, we will end up with a team with significant experience in all the right area's...who will effectively be in control of some very serious money...$1b from what people have been saying.
The simple question for me therefore is...
Given likely assets and particular commodity focus of the company, how much value adding are they likely to achieve?
We have a company worth some $50m controlling $1b of investment...in the current market, with the right people and the right assets, a 5-10 time increase is not out of the question.
Neither is a 100 times if handled well.
Regardless of what the eventual dilution equation may be (and remember everyone at CVI got options), the simple fact remains that "Team CVI" will potentially add some $5b-$10b in value here over time...all going to plan of course...both for the benefit of the Angolans and of course CVI.
This is "created" value, not "diluted" value...how much do you think CVI will get?
Think of it as a JV partner who farms in to your project for 80%...they may start with just say 10%, but as they progress the project and meet milestone obligations, they increase their stake...in the meantime, the value of the asset rises, increasing the value of both parties.
Anyway, the simple answer for me in measuring potential value here, is that with a current market cap of just $50m, the scope for adding multiples of this on the back of the spending/value adding power of $1b is clearly significant.
Are they up to the task?
Look at their backgrounds and it seems pretty clear cut to me.
Keep it simple.
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
