RE:RE:NEWSHendrick3 wrote
Interested in other views but this seems very positive news to me with Murray Edwards increasing his stake to over 15% with an implied intention to buy more. I think there is some M&A activity underway or it may just be the reality that with dividends now being paid, warrants are less desirable to the shares. Great news whatever the future plan might be. Higher production, prices and higher involvement by Murray Edward are all good signs for a much higher stock price.
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It is actually very good news for Mr. Edwards and not such great news for CJ. Mr. Edwards just cashed in aprox. 8.25 million warrants for shares for aprox. $9.8 million. At todays shareprice those shares that he just payed $9.8 million for are worth aprox. $72 million. So a nice $60 million plus profit which he did not have to invest a penny for until now. He could sell 1.25 million of the new shares to pay off the $9.8 million purchase price and have 7 million CJ shares worth aprox. $60 million for nothing more than investing his $9.8 million for a few days.
That is likely why Mr. Edwards is a billionaire. Currenty he is worth around $3 billion US. He is a sharp cookie and could see that investing in CJ at the rock bottom prices he did a year and a half ago would likely pay off very well as it now has. He was also a little lucky with his timing as the Ukraine war came along and has helped oil prices to rise to a very high level and make him huge money.
The fact is that the warrant shares were likely the most expensive CJ shares he bought. At the time he bought into the private placement in December 2020 he already owned aprox. 11 million shares likely bought in the 50 cent range and bought another 6 million in the private placement for 50 cents. So adding it all up his aprox. 25 million shares of CJ likely cost him around. $19 million. Today those shares are worth aprox. $220 million netting him a profit of around $200 million on his investment which really only cost him aprox. $9 million for the last year and a half until he exercised the warrants. $200 million profit for investing $9 million for a year and a half. Wow.
On the other hand when Mr. Edward came along CJ was in pretty tough shape financially with oil prices at bankruptcy levels. His investment in shares and $13 million Cash in the private placement not only helped CJ survive it gave it a lot more credibility with him as a major shareholder. CJs shareprice was also in the 40 to 50 cent range for many months in 2020 so everyone had a chance to buy all the shares they wanted at those rock bottom prices.
For those who loaded up at those prices and held on they have made some life changing money. Congratulations.
Its incredible over the years how much money has been lost and also made with these volatile oil stocks.