Forum Archive Index - April 2002

[Iain Ballantyne <aircharter@aircharter.co.nz>]

What about the fact that the sub is about to be chartered at full rates shortly 
for the new film Ogopogo down there......

Good for a bit of short term speculation
> 
> From: "Paul J. Brewer" <pjbrewer@ust.hk>
> Date: 2002/04/04 Thu AM 08:47:39 GMT+12:00
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] SUB - Is it a buy at $0.06?
> 
> The story is that the sub lost money at Milford Sound and there is
> a backup plan to operate in the lake at Queenstown.
> 
> 30 June 2001 Financials showed book value of assets was $3.15 million.
> $2.2 million of this is the submarine itself, which they built for $1.5
> million.
> 
> The market is valuing this company at $0.06 x 8.7 million shares = $0.52
> million
> 
> Suppose the company were liquidated.  Suppose we value the sub itself at
> zero.
> Losses in Milford Sound were est at around $600k, so that leaves
> $3.15-$2.2-$0.6 = $0.35million
> or about $0.04/share, as a conservative lower bound.  The sub must be
> worth _something_,
> right?
> 
> Now having been down on the sub, I can say that the sub is pretty cool.
> 
> If it were run in Queenstown, it would be in a much higher traffic area
> than in
> a remote corner of Milford Sound.  The lake is stocked with trout, so I
> suppose
> there would be some amusement value in the dive (though the dive at
> Milford Sound
> was probably more interesting from a biological perspective).
> 
> The problems I see are these: (1) it gets cold at the lake in the winter
> (does it freeze up?); (2) You can see the trout from the underwater gift
> shop at the jet boat pier; (3) The jet boat is a better adrenalin rush
> (the sub might be better for old people as long as they aren't
> claustraphobic).
> 
> I suppose I should be buying a bit more rather than posting this;
> eventually they will find a sensible
> place to run the sub (why south? why not north? or someplace tropical in
> australia or fiji?), or they will run out of money.  Which do you think
> will happen first?
> 
> 
> 
> 
> ----------------------------------------------------------------------------
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/
> 
> 



----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/