The problem for…PRQ is that it will never be able to attract the tier 1 professional investors (Instos) as investment mandates for same likely preclude them investing in companies such as PRQ what with the minescule free float and the massive Control Block (Gray clan) soon looking to go past ~75%.
Secondly, and somewhat like their big brother PEY, Petrus tills their own field; they don't issue equity through broker syndicates etc., they don't host Analysts to site and to initiate Research and as such, they don't court The Street meaning they don't "pay" the Street. So none of those myriad Trading Desks & Analysts will be talking of PRQ each morning before market open and none will be pushing our stock and/or our idea as THE ONE to their Clients.
Where we go in respect of the Bid/Ask will therefore fall to the Retail investors to determine. That is the same path plotted by Peyto these past ~20 years and it seems to have served them & those shareholders well (me included).
Retailers aren't necessarily a bad thing - as another example, just look at what they've done for NPK these past 8 months (me included).
What I would like to see from the PRQ stewards is exactly the same as they have achieved with PEY which includes relentless, data driven cost management, exceptional land and drilling target generation, retention of highly valuable and skilled professionals REGARDLESS of cycles not just when times are good and an aggressive Dividend policy.
I believe this last point might be the most obvious given the +85MM shares the Grays will own after the Rights issue they backstopped. Can you imagine that monthly income even at a couple of pennies a month?
And in 6 years when PRQ is up around ten times its current daily production?
...now it's not been completely rosy over at PEY. The one legacy the Chairman should absolutely NOT replicate here from his history there is the PEY Hedging policy. To keep placing hedges along the curve in a backwardated market is not clever and isn't helping that company at all.
Perhaps in the forthcoming Q conference call we can present that simple Q for PRQ to respond to?