GREY:EGDFF - Post by User
Comment by
parkuson Apr 12, 2012 1:31am
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Post# 19784224
RE: RE: RE: Illogical
RE: RE: RE: Illogical Q4 sucked plain and simple. Revenues came in below the lowest analyst expectations and well below mine. Did not expect such a fall off in the energy division and thought the mineral division would be relatively stable in terms of total revenues relative to Q3 as we saw in Q3/Q4 2010 but it didn't happen. It does appear that 2012 is looking pretty solid but it appears that their #1 obstacle at the moment is getting new rigs into the field. If they can build it, they will come.
Based on back of the envelope math after what I heard on the conference call Q1 revenues should come in at $49-$53 million although I had Q4 at $41-$43 million so I could be wrong. I was sitting at $42 million for Q1 2012 prior to the CC after recent results.
Whomever was selling today was selling in size. 20k share blocks. I doubt FM was the sole reason. Something to take into account is that EGD had held up quite well in spite of the Venture and commodity markets tanking for the past 6 weeks. You don't sell what you want to, you sell what you can when you need to raise cash. That may be why we saw selling in EGD today. On the contrary I was a bit surprised we rallied on Q4 results. We shall see how tomorrow goes but I'm thinking we stay in consolidation mode. Not expecting a big breakout to the upside until later in the year.