Pssss.... Look at TAS
In Dec 2015, TAS wrote that it owns nearly 44% of EDE. With EDE at around 5c, its holding in EDE was worth 7c to its value.
Today, EDE is worth 17c and TAS is worth 12c on the ASX.
Can anyone do simple arithmetic? The only downside is I have no idea how much debt TAS is in.
posted by Club Mulgoa @ 5:54 PM
4 Comments:
Today, TAS says it owns more than 43% of EDE. AT 28.5c for EDE, it is worth 43c based only on EDE valuation. So I checked whether it has debt. Debt = 0.
I bought at 24.5c today (topped up) but it has gone down to 22.5c. Still I am paying under 25c for something worth 43c. Currently EDE is 29.5c.
This is an extract...
Eden shares vaulted 20 per cent yesterday and bear little resemblance to the 1c value ascribed to February’s rights and options raising. The real intrigue lies in the value of Tasman, which is also chaired by Solomon and owns 44.5 per cent of Eden’s ordinary shares and options collectively worth $175m, or 46c per Tasman share.
Yet Tasman shares trade at close to half that value, with some SA copper and gold tenements (once of interest to Rio Tinto) thrown in for good measure.
This disconnect has been apparent for some time and it may take a takeover raid on Eden for the valuation gap to narrow.
Today, with a new customer, EDE share price went for a leap but this is still below its recent peak.
What is absolutely crazy is TAS also went up but it is grossly undervalued as it has no debt and owns a big chunk of EDE.
Anyone wanted to take over EDE will have to buy up TAS too.
With my recent top-ups of TAS, I have made a loss in both parcels. However, both purchase price (21c and 24.5c) are still below its true value if calculated using its worth of its holding in EDE shares. At today's EDE price, it is worth around 45c I think but the market price is less than half!
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