Petrogress Inc. (PGAS)

[lordboozio]

Given the setup we all came here for (extremely low market cap compared to high (seemingly hard) assets and shareholders’ equity), a key area to probe is impairment. With the commodity price-driven nature of PGAS’s profitability and some of language in the last 10-Q, it’s reasonable to expect that some impairment will be recorded.

However, because I find scenarios helpful: 50% impairment on all assets = $6M. For simplicity, assume no change to liabilities at $4.4M. That ~$1.6M of equity divided by 11.6M shares O/S implies a $0.13+ PPS, so more than 4x Friday close. Of course, that scenario would involve a gnarly-looking balance sheet, but gnarly enough to justify such an apparent discount to value?

The above is just a back-of-envelope exercise with no great scientific basis. Nonetheless, very perplexing to me why PGAS is stuck in the low 03s, even accounting for some usual MM shenanigans. Look forward to seeing what happens next week.