Terra Energy (TSE:TT) is a natural gas producer trading below its PV10 – the discounted future expected cash flows from flowing gas reserves, after expenses – a great way to profit from increases to the price of natural gas then. I test the assumptions underlying the PV10 calculation to assess the downside.
In this latest part of the AIM IT Project I cover Aurora Russia (AIM:AURR), Origo Partners (AIM:OPP) and Ingenious Media Active Capital (AIM:IMAC). They all trade at steep discounts to reported book value and are interesting companies to look at from an historical perspective too.
Peerless Systems (NASDAQ:PRLS) is a small company selling for below net cash which still generates positive cash flow. It is also involved in an extremely aggressive share buyback program.
In the next part of the AIM IT Project I take a look at three companies, Amphion Innovations, Praetorian Resources and Skil Ports & Logistics. One of these companies is trading below its net cash and is tempting me as a compelling investment.
Joy is one of the largest global manufacturers and servicers of high productivity mining equipment. It sells both new equipment (40-50% of sales), and parts to repair and upgrade existing equipment. Coal and resource stocks haven’t been doing well lately, and naturally, neither has Joy. It now trades a P/E ratio of 10.6 but still has a return on investment of 14% in a depressed market.
An update on some recent changes to the portfolio. Novus Energy (TSX:NVS) has been taken over, I have initiated a position in Clear Leisure (AIM:CLP), and have a good old rant about foreign currencies!
The next installment of the AIM IT Project. In this article I go through Cambria Africa (CMB), Mineral & Financial (MAFL) and China Growth Opportunities (CGOP) which all have very disappointing histories in terms of shareholder value creation, but is there a diamond in the rough?
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