RE:RE:RE:RE:RE:RE:COS and CUS1, No 2. 1,000
I said from the beginning that Suncor needs at least .32 to get support and as much as I don't like COS management for not growing the company and their handling of this whole process, Suncor's is even worse at this point regarding the handling of this hostile bid.
You have COS management that says they have 25 interested parties and 4 real prospect but obviously no one saw enough value to bit higher. I also feel, COS management is all about protecting their job. To me, it's obvious that Suncor is the logical suitor for COS and if this deal falls through, shareholders will just have to wait it out.
Then you have Suncor which wants to buy your house which is not on the market and refuse to at least offer what was offered in April last year. Now say I'm in Alberta and my house was worth 1 million last year and today it's worth 500k, I don't expect a 1 million offer today but at least maybe 750k. if not, than COS has the right to tell Suncor to F.Off just like they have the right to wait for their house to be worth 1 million again before selling. In COS case is do the shareholders want to wait or still see the same value as they did when they first invested in COS.
Personally, I still beieve that with a .32 offer and the upside from Suncor is better than a starting point of 6$ or lower COS. Obviously for me, like Steve William would say, I don't have skin in the game like some do here but COS has been a long term holding for me. I first bought 1,000 shares of COS in 2008 at an average price of about 25$ and at the same time bought 1,000 shares of Suncor at about $24 (yeah, Suncor was cheaper than COS in 2008) . For me, I look back 7 years and I see that the diversified model of Suncor has protected my capital (24k to 35k today) while the torq to oil price COS has done the opposite (25k to 8k today). It's obvious that some are down quite a bit on this judging by the quantity of their holdings and might be emotionally attached
Nobody knows for sure what the future holds except eventually oil prices will be higher. But how much debt will COS accumulate and damage to COS share price will happen if oil prices remain below $50 for the next year or two. I said before, just because you're down with COS, you don't have to recuperate your money or average down with the same company. I haven't increase my holdings in COS but I have bought a few thousands share of Tck.b at 5$ as I feel oil and mining stocks are all in t he same boat right now. I know Tck.b has their own issues right now, but I believe they have more options by either doing streaming deals or selling assets and at the same time I get to diversify away from one company.