Arcan Resources Ltd ARNBF

Presentation

[nlr2]

New presentation is out. Any thoughts?

[skeksis]

On the plus side, I am very encouraged by the four Q1 wells they drilled both for their low cost and the high 2P reserves added per well.  The economics look fantastic.  I wish they were not losing so much cash flow to interest payments.  They could achieve a fantastic ROI for the company by buying back the debentures on the open market.  I think the high yield of the debs is

[jbsbill]

Skeksis, not positive but I think you can buy the debentures with an international account from E-Trade. My problem with ARN in general is that they're running in place, generating cash flow to pay the banks and have difficulty growing their way out of the debt and leaving something for shareholders. NAV is wonderful, but if you can't turn it into cash flow for shareholders, the share

[skeksis]

I have an etrade international account and it lists the debentures but if you try to buy them the trade will never go through.  After about a dozen emails and three phone calls with their customer service I was told you can't buy them after all; only stock trading is allowed.  Interactive brokers is the same and the Canadian brokerages that let you buy exchange traded debentures seem

[nlr2]

I live in Canada and am a RBC client. When I went to buy some of the debentures they were listed at $57 when they should be at $570 and my order status made no sense so I cancelled it. Perhaps you need a special account or something? I'm really not sure.  If you read the prospectus on Sedar for the debentures I don't think that Arcan can buy them at market value. I haven't looked

[rad10]

nlr2 - that is how debentures traditionally trade.  You are not getting dinged. Buy them in blocks of 1000 face value, but bid is for 100 face.  Beware trading costs for less than 20K face and budget for accrued interest. Last time I checked the CEO was selling his commons and picking up his debs

[nlr2]

Ok thanks for the help, I appreciate it. I had never looked into debenture prior to this. I think that they are the way to play this, but I don't think I have sufficient capital to swing it at this time. So hopefully the commons do well. I was a bit surprised to see the strong close into the finish yesterday.