Originally Posted by
silverblizzard888
I'm in it for the assets.
Capital returns (71 (first capital return) +43 (second capital return)+ 5 (yet to be paid) = 119 x 0.6) = $71.4 USD - 20USD debt repaid earlier. 51.4 USD left, equals 71.5 NZD in Rubicons bank account.
Clearwood valued at $55 US, 50% equal 27.5 USD or 38.25 NZD.
= Cash 71.5 + Clearwood 38.25 = 109.5 or 26.76 cents per share, not even counting arborgen.
Conservative Arborgen value. I've looked at Sygenta, Monsanto and Dupont
They all seedlings producers (though do produce other stuff too) and all trade at least 3 times sales. Arborgen's current sales are 40 million USD, given RBC own a third it would be worth 40 million to them and is equal to 55million NZD. I think this valuation is conservative enough.
Add 55 to 109.5 and we have 164.5 million value or 40 cents per share.
No matter how you look at it RBC is undervalued.