It is the value of the orig stake of 165 million = 56 million times orig stock price
225 million cash
Liquidation at todays price would give them 390 million in cash
On SA another poster said that George was taking assumption of the debt. That doesnt make sense to me.
Is he right because if he is 475 million has to be added to my value and the stock is a screaming buy here?
I am calculating about 225 million in cash when all is said in done.
Total Debt 1001
Tanker Debt erased 260
ORIG Debt erased 80
ABN Amro Erased 185
Total Debt 476
Cash received from sale of all ships
1,416,225 2nd Q balance sheet
621,225,000 Cash from sales
476,000,000 Debt on ships
145,225,000 Total Cash
80,000,000 Cash reported at last conference call
165,000,00 ORIG Stake
390,000,000 ORIG plus cash
We need to add current assets and subtract current liabilities I believe which shaves 60 million off value of company.
330 million value of company is what I came up with
Debt was 1001- 260 Tanker Debt- 80 million ORIG debt- 185 ABN AMRO debt. Total Debt was 475 before this and now its 240 million that will be 0 once they sell the remaining vessels. Please Read the CC transcript from last quarter.
Does DRYS assume the debt or does George? It seems like from the PR that Geroge does but that doesnt make sense.
I could be completely wrong in my analysis so please add commentary to my numbers.
Tankers :260 million debt
Ships sold : 238 million debt
ORIG: : 80 Million Debt
ABN : 185 Million Debt
Held for sale: 1001-763= 238 million
If DRYS sells the remaining ships I believe they will have no debt.
From last CC, they have 80 million in cash on balance sheet and will end up with 600 if they liquidate all of the ships so around 680 total minus cash expenditures until that is complete.
They have around 200 million in ORIG stake at these prices. Other current assets are 100 million with other liabilities of 165 million.
Wouldnt a fair value of the company be around 800 million if they become just a holding company?
What type of offering would take DRYS plus affiliates equity stake below 50 percent of the voting power? I guess GE owns 5 percent so that would have to be equated along with others associated.
They already disclosed this news a month ago in a PR. They renegotiated their contracts with ENI to utilize that rig and are still going to pursue damages from Total.
It looks more and more possible that ORIG restructured those contracts so the company could look more attractive to a buyer. DRYS sells ORIG for 14 plus and has money in the bank to survive this nasty market.
Option Alert: Penn Virginia Jan $7.5 Call; 2,000 Contract Trade @$0.45; Currently $6.55
Discovery Labs Shares Up 19%; Company Spokesperson Says No News from Company, Aware of Recovery and Volume; Not Sure Who Buyers Are; Says No Reason for Previous Selloff
Dayrates are still over 500k for Drillships
We need a positive PR or their one remaining drillship to get a contract to stem the bleeding