when adjusting for the 40% of the company's shares that were bought back at $0.89 per share just a few weeks ago. Buying a $500 million cost vessel for $60 million seems like a smart long, term strategic move as well.
No, Proforma book value is $39 per share as adjusted for the large buy back of its stock from DRYS at $0.89. It will take another couple reporting periods for it to show up on Finance Yahoo as the transaction just closed in April after the end of first quarter.
Better opportunity than SDRL which is trading around 15% of book value and close to 6x trailing EBITDA. ORIG trades around 4x trailing EBITDA and has been buying back debt at a discount in addition to buying 40% of its stock back in today at $0.89 per share, a massive discount to the year book value of approximately $24 per share.
at Dec. 31 adjusting for the $50 million of cash paid and now approximately 83 million shares outstanding. A $15 proforma book value increase and the stock is up only $0.11 and is currently trading at 2% of book value with a couple of years of liquidity. Seems greatly undervalued at this time?
Would be about 5x 2016 consensus EPS estimate of $1.07 per share. Only at 1.2x expected earning right now and 4% of $25 book value per share. SDRL is trading around 5x 2016 earnings estimates and 30% of book value after its big run-up with a more leveraged debt profile than ORIG. ESV trades around 6x 2016 EPS and 45% of book value although has less leverage. The other large drillers are trading at higher multiples.
There is only 70 million shares in the float or $100 million of float value trading so that coupled with the short interest could lead to big moves if the big hedge/fund guys see the value?