Tuesday, April 26, 2005 3:59:38 PM
Updated RNC 2005 Projections
These financial projections should be materially accurate, I hope...
San Andreas acquisition in 2005 continues to be key variable. My model shows this acquisition to be nicely accretive. RNC projected 5M share issuance in Oct 2004 presentation, I am using 7M shares. Am not totally sure about debt assumed, but 7M shares plus $5M debt seems reasonable based upon my understanding.
Canadian GAAP for stock based compensation line item is highly amusing. Reasonableness should be used instead of Black/Shoales model... To wit: there are 2.32M options issued to management at exercise price of C$2.18 that expire in 4.5 years. The stock is trading under C$.80 and somehow Candian GAAP made RNC expense an extra $382,000 in 4Q04 as stock based compensation. Go figure...
These financial projections should be materially accurate, I hope...
San Andreas acquisition in 2005 continues to be key variable. My model shows this acquisition to be nicely accretive. RNC projected 5M share issuance in Oct 2004 presentation, I am using 7M shares. Am not totally sure about debt assumed, but 7M shares plus $5M debt seems reasonable based upon my understanding.
Canadian GAAP for stock based compensation line item is highly amusing. Reasonableness should be used instead of Black/Shoales model... To wit: there are 2.32M options issued to management at exercise price of C$2.18 that expire in 4.5 years. The stock is trading under C$.80 and somehow Candian GAAP made RNC expense an extra $382,000 in 4Q04 as stock based compensation. Go figure...
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
