U.S. Energy Corp. (USEG)

[LouisDesyjr]

USEG value if liquidated

The more I look at USEG, the more I think they should liquidate.

So far in their corporate life, as of 2015 Q1, they have:
1: Raised $124 million in capital and additional paid in.
2: Lost $40 million.
3: Are on track to generate revenue of only $10 million per year.
4: Are on track to lose $11.2 million per year.

If they were able to sell everything off now for maybe 50% of what they paid for it (equity of $83 million x 50%), they could distribute a liquidating dividend of $1.49/share, and everyone could get out with something, and the creditors get paid in full.

I expect that if they continue to operate, the value will go down over time and even the creditors will lose out.

Louis J. Desy Jr.