Sunday, August 4, 2013

Devon Shire's Article on Alberta Oil Sands

http://seekingalpha.com/article/1579412-alberta-oilsands-inc-a-potential-cash-windfall-that-could-change-the-company

Bottom line:

The company has no debt, $6.7 million in cash, and a market cap around $30 million.  The Canadian government owes the company $51 million + 5% interest.  As far as I am concerned, this meets the definition of a Ben Graham Net-Net.


Note that in the comment section Bullvestor made the following estimation of the value of $51 million + 5% interest:

2007: ~ 6.9 mil interest 5% for 6 years means: ~ 8.8 mil
2008: ~ 9.9 mil interest 5% for 5 year means: ~ 12.6 mil
2009: ~ 5.9 mil interest 5% for 4 years means: ~ 7.1 mil
2010: ~ 6.5 mil interest 5% for 3 years means: ~ 7.5 mil
2011: ~ 18.3 mil interest 5% for 2 years means: 20.2 mil
2012: ~ 2.0 mil interest 5% for 1 year means: 2.1 mil

= 58.3 millions
+6,7 mil cash
= 65 mil

on 212 mil shares = 0,306 cash/share

1 comment:

  1. Employment opportunities for horizontal drilling in Oklahoma is massive. Oklahoma is all about oil and natural gas. Unemployment rate is way below than national average, and it’s because of this industry. Nearly one-quarter of all jobs in Oklahoma are tied to the energy industry. A recent research of the Oklahoma Energy Resources Board shows us the oil and gas industry was responsible for pouring more then $51 million into the state's economy and created jobs for over 300,000 people.

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