>>Do you know Canada might nationalize CFK at low ball price, as they nationalized other companies before. On the other hand, why do you think Lukoil paid Nelson at low ball price? Do you realize CHAR would worth over $10 based on the same price per oil reserve Lukoil paid to Nelson?<<
You are a funny guy VM. I sure won't lose any sleep worrying about canada nationalizing CFK, but let me tell you how Lukoil can screw outside CHAR stockholders. First though, CHAR is not worth $10 based on what Lukoil paid for Nelson. Lukoil paid $2 Bil for Nelson which works out to about $12.60/ bbl based on their proven reserves. From CHAR's last 10K, their proven reserves are 24.4 Mil bbls after the minority interests are deducted. That would give CHAR a current value of $8/ share if Lukoil paid the same to buy out the minority stockholders interests.
Lukoil took majority control of CHAR's board of directors (and fired the CEO). All they have to do is hire another engineering firm to do a new reserve analysis. Only 16% of CHAR's proven reserves are developed. A "conservative" valuation could find those reserves reduced by half or more particularly since 84% of them have not been developed yet. Now CHAR is suddenly only worth $4/ share on the same basis.
I'm not saying that will happen but it certainly could happen and that is part of the reason why CHAR is so cheap based on its forward PE.
