Essential Energy Services Ltd T.ESN

What is going on here?

[auburn2]

Merciless dumping through CIBC that has been going on for a long time.

[Torontojay]

Too many short term traders make this a compelling buy opportunity. This poor share price performance may continue throughout the balance of the year as people will exit their position towards the end of the second half  for tax loss reasons.  On February 19th the company traded at 32.5 cents just prior to the stock market crash. This is 2.5 times the current value which to me makes

[auburn2]

Could be price suppression prior to a takeover. I agree some of those debt-ridden pigs would be wise to issue shares for ESN.

[auburn2]

Compare the valuation against WRG. Even a combination of two well-managed and low-debt names like ESN and CET might be clever, but I don't expect it. TCW taking over ESN would make sense and be more likely.

[ariesleaf]

What we really need is news. Merge buyout or going Private.

[Adonis1411]

Unlikely to happen. Read the ESN Management Information Circular. Payments due to executive management on change of control are almost $8 million. With current market cap around $20 million, that means that a buyer is on the hook for a 40% premium to current trading value even before shareholders can realize a cent of that premium on purchase. Yes there are lots of assets, but very little cash

[auburn2]

They don't need much cash flow now given they have the balance sheet to wait out a recovery, same as I do. The cash flow will come as market conditions improve. No need for a takeoer, no need for any gimmicks or clever tactics. They will do just fine once the tide turns. This team has proven themselves top tier and I want to personally congratulate them.