C and J Energy Services Inc. (fka CJESQ)

[andrius]

Your shares will continue to trade normal until they exit bankruptcy at which point they'll issue new stock equity to lenders. Current shareholders will get warrants which is basically a right to own new equity at predetermined price.

The way I understand at 1.55b valuation in new company old shareholders can exercise 93M in equity. What current shares are worth depends where new shares will trade at.

I think this is probably a great buy here. For one 50% of the float is/was short and shorts expected shares to get canceled with 0 value. Thats not the case so most will be covering with potential short squeeze. Also lenders basically swapped all debt for new equity. This will be a debt free company with about 1.7B in assets. They'll save about 25M a quarter in interest payments which will add 100m to bottom line each year. This should end up a profitable company.

Looking around seems a lot of oil stock market caps are priced about 2x assets-debts. So I'd assume new equity here will be worth about 3B. Current market cap here is 30m and if new equity trades around 3b market cap current shares should be about a 200% gain. 3B market cap - 1.55b warrant exercise price= 1.45B x.06= 87M. 87M from current 30M market cap should be about 190%.

This is just my opinion, if someone thinks different would love to hear the thoughts. happy trading and good luck.