GREY:CAZFF - Post by User
Post by
siempre33on Mar 20, 2015 4:50pm
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Post# 23545222
ALWAYS looking for the positive..
ALWAYS looking for the positive..from a UK board >
".. the Caza story is fascinating: text book "gearing": high risk high reward playing out.
If I was forced to answer the question "will it survive" my answer would be that it should not....but it will.
Reasoning.
Superb management rolling out a plan, but immediately responsive to change and implementing a survival strategy PDQ.
Appollo has more to lose than CAZA by pulling the plug and therefore are unlikely to do so: Caza are Appollo's best chance of regaining their capital, as it is Caza who have the expertise in these wells and some expertise in selling assets on.
Up to this point, Caza has avoided significant dilution (a tribute to management's credibility in fund-raising, both equity and debt). Now, significant dilution will be unavoidable and that is probably a far greater threat to your capital than actually going bust.