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Cobalt Energy (CIE) IPO -- thumbs down -- better find some oil, fast

|Includes: Anadarko Petroleum Corporation (APC), DVN

CIE is a public drilling fund without tax advantages, has been in business since late 2005, has $506mm in contractual obligations through 2013 and apparently is running out of money, which means capital calls for existing investors, or an IPO of course.

CIE, however, is sponsored by Goldman Sachs and Carlyle, both of which own 27% pre-IPO

The enterprise-value to book-value (see below) comparisons are not favorable for CIE IPO investors, they are favorable for Goldman & Carlyle.

CIE IPOreport includes Enterprise Value valuations
http://bit.ly/6IQCf9




Disclosure: none