OPTI Canada (OPC)

On first take, I recommend to stay away from this POS. However, I am tempted to support a speculative buy hoping for a takeover if the price continues to decline.

Cash Value of $1.19, Debt per share of $9.25 (paying avg of 9%), but still maintains a book value of Book Value of $3.50, with current assets greater than current liabilities. EPS is roughly -$1 per share, so what book value remains is eroding quickly, but still don't think it is possible to burn through 3 years at a loss of $1 per share without shutting down. Question is: what will it be worth at fire sale?

The reason I will pass is because the majority of the book value is based on $3.5B in equipment, which could easily be discounted by 30% or more depending on a lot of factors. That means a reduction of approx $1B to assets and that puts the book value in negative position, which means the stock in breakup mode is worthless. They are soon going to need more cash to fund the operations, and debt does not seem likely, so it will be financed by shares (at these already ridiculously low prices).

In my opinion, this stock is a pass, but there is opportunity here for those who prefer more risk, as a turnaround in earnings (anything positive will do) would get this stock back to $2 quickly.

I bought in today @ .64....here's hoping

As long as you know what you are getting into and that this is one of the few stocks that has a real chance of going to $0.

kinda late for that comment!!!! just kidding. I know...

Now that I actually have some cash to invest I find it a lot harder to actually make a pick and follow through.

There is still much learning to do. . .

still holding, trading sideways ever since i got in....still hoping for some updates on production or anything positive really!

Updated financial statements coming any day now..... Once we have those, I will take another look. If they have stopped the bleeding in earnings (which I would bet they have not), then it becomes more interesting.

so much for trading sideways....tanking hard this morning...something about an rbc report...still investigating...bummer...

Fred, i've already shit in my hat, just waiting to pull it down over my head

http://www.newswire.ca/en/releases/archive/February2011/01/c6900.html

Well they halted it....finally after 15 million shares traded.

here's hoping for good news...not likely though :S

http://www.marketwire.com/press-release/OPTI-Canada-Inc-Provides-Update-on-Strategic-Advisors-TSX-OPC-1388663.htm

Personally, i don't think this news warranted the stock price plummet but hey, i'm not the smartest investor!

The article just emphasizes the depth of their fianancial problems although I would have thought most investors would already know.

I've got a hat full of shit of my own with CCME, so I know how you feel.

got out yesterday for a 30% loss....i was partial to this one too...oh well, moving on! let's hope i can recoup with INT!

I think you will be happy with the price you got if it ends up at $0 like the analyst is now predicting. I am half way tempted to put $100 in or something like that in case the restructuring works, but I think it is too far gone.

OK, so what are the lessons learned from this one?

OPTI Canada announces delisting from TSX

It's official, you called it again Max! $0