Petrobank Energy & Res Ltd New Com (NASDAQOTH:PBEGD)

CAPS Rating: 4 out of 5


Player Avatar TMFDeej (99.24) Submitted: 10/26/2010 4:05:43 PM : Outperform Start Price: $22.07 PBEGD Score: -63.55

The margin of safety in Petrobank is excellent. Check out its assets as described in the following excellent article: 110,000,000 shares (58%) of Petrobakken. Current share price of PBN is $23 which is a market value of $2.5bil2) 66,000,000 shares (65%) of Petrominerales. Current market cap of PMG is $1.65bil3) A heavy oil business unit that sits within the parent company that has 670 million BOE4) Ownership of a potentially game changing oil sands extraction technology that could be worth billionsNow as I have boldly claimed above I’m focused on rule #1 first and foremost which is trying to make sure I don’t lose any money. Petrobank itself has 106,000,000 shares outstanding with a current price of about $40 per share. That is a market cap of $4.2bil. The company has minimal net debt. The shares owned in just 1) and 2) above are worth in the market today $2.5bil + $1.6bil = $4.1bil.Petrobank Market Cap = $4.2bilMarket Cap of the Two Public Subs = $4.1bil

Member Avatar portefeuille (99.66) Submitted: 12/29/2010 12:43:09 PM
Recs: 1

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