This is why I am puzzled that EOC is trading at $45M market cap (although on virtually non-existant volume). When even at a relatively conservative guess we are independant of each other coming up with an MDS value of $125M - that turned into cash would be 60c per sharejust for MDS. It becomes even more puzzling when you put into context that we are being told that there are actually interested parties dealing with Macquarie. Based on those comments the MDS asset looks relatively liquid to me and it really just comes down to price.
Even if MDS was sold at a large discount to our DCF estimates, for say $80M, it would still give EOC a market cap of 40c which is 80% higher than current share price. I mean you guys don't want it sold at $125M but even if it took a 50% haircut on that EOC would have a share price of 30c.
A mystery, but good buying opportunities.
I am the Iceman!
EOC Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
