InvestorIntel - Alberta OilSands: $51M Forthcoming; AOS Shares Undervalued, Trading at Half of Cash Value
Toronto, Ontario--(Newsfile Corp. - August 30, 2013) - Tracy Weslosky, Publisher of InvestorIntel interviews Binh Vu, Director and CEO of Alberta Oil Sands Inc. (TSXV: AOS) to discuss the recent events in his company, the incredible increase in Alberta Oil Sands share price and the potential upside for AOS investors.
Tracy by starts asking Binh to discuss Alberta Oil Sands' dynamic growth in its stock price, up 400% in the past month, and how — in spite of the obvious uptick in share price — AOS has a long way to go before it achieves market valuation (AOS is currently trading significantly lower than cash).
Vu comments: "Correct, Tracy, and that's where the value is in our company. When people realize the assets that we have, coupled with the incoming cash we will be receiving soon, we anticipate the share price to climb… our stock is very undervalued."
Tracy then asks Vu to discuss the recent deal involving the company's Clearwater Project that started really moving Alberta Oil Sands stock. "In late July, the Province of Alberta announced that they would be cancelling our leases for our Clearwater Project area to make way for urban development expansion in the Fort McMurray area. The bright side of that announcement is this cancellation by the Alberta government entitles Alberta Oil Sands to compensation," according to Vu. "The compensation is clearly spelled out in the legislation. Any expenses we have incurred as a result of the Clearwater Project for exploration, development, remedial costs, interest, etc. would be included in the government's compensation. We are expecting $51 million from the Province of Alberta."
Tracy has Binh translate this recent news for the Alberta Oil Sands shareholders. "When I first met you a month and a half ago, AOS had $6 million in the bank already. In these cash strapped times, you now have another $51 million forthcoming. So what is your market cap and where should this stock price actually be with this additional $51 million?" asks Weslosky.
"With 200-million-plus shares outstanding and a $51 million cash influx (which will bring us to approximately $55 million in our company's treasury), our stock should be trading at (at least) 0.30 cents to accurately reflect what we have." Vu explains. "Right now, it's below that and it's a great value."
Other topics include AOS's substantial amount of exciting oil-and-gas assets in Africa, including 21 million hectares of oil-and-gas exploration properties in its portfolio, underscoring the point that AOS is far more than just a company with over $50+ million in the bank.
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Disclaimer: Alberta Oil Sands Inc. is an advertorial member of InvestorIntel.