California Resources Corp. (fka CRCQQ)

[brandemarcus]

1. How much do they "own" vs have minerals rights on? Most of this is in the hills in central California so not very valuable. You are not going to have housing development on top of an oil well.

2. They are selling at 1 times cash flow and probably .25 times cash flow at 70 dollar oil. Add the debt plus market cap/ oil per barrel = 6-7 per barrel. Debt could probably be bought at 60 cents on the dollar or less.

3. One could compare what Suncor is trying to steal Canadian Oils Sands for or Conoco's aquisition of Gulf Canada in 2001. What did oxy pay for just Elk Hills in 1997 and oil was less than $20 back then. I think they paid 3 billion for it.


4. No question that this is cheap as a call option. The big question is will the company panic and do a debt restructure before they have to and before the oil market turns around? That is my #1 concern!