Value Microcaps Junior Energy

[dr_airtime]

CDH.TO - a true energy microcap with negative enterprise value!

Value Digger @ SA still one of my two favorite authors over there. Check out this piece on Corridor Resources which has a negative enterprise value at (CAD) $0.64. I bought last week @ $0.62. It closed there today. Ignore the chart as the new floor for CDH is $.60 as the article will explain.

https://seekingalpha.com/article/4094126-value-investors-overlooked-investment-idea-good-true

Thesis here is hold for year for recovery to a more rational valuation. The blue sky potential here is them getting a JV partner that carries them for a deliniation well in next couple years for offshore oil Old Harry prospect and they discover another Hibernia (masssive NFLD offshore field finally going into production now). You get this optionality for free. I have no idea if it has Hibernia potential. It is free anyways. You get the company and their 21 year PDP reserve life for zero.

Because they are a little specialized producer they have a 21 year PDP - I have never seen a reserve life this long! Goes to show you the true valuation for this little company is not a zero enterprise value!