RMP ENERGY INC T.RMP

I'm staring to believe the rumours for one reason.

[TheRock79]

Last financial shows a lost because of one time non cash impairment. 
Out experience companies have done this right before a takeover or any big change to the company's structure. Bombardier has done this in their last financials before they sold 50% plane division and 30% of rail division.  Company who takes over don't want this ruining their financial once they take ownership.

[RTPisinyoface]

By this logic 90% of oil & gas companies are going to taken out. 

[TheRock79]

I'm not saying its always the case. It's just a weird time to expense it. If they would have been showing a profit SP would have reached 2$. There was no rush to add a non cash impairment at this time. It could have waited until profits were a little higher to counter weight it. It just makes the company more attractive for a buyer. I'm just trying to figure out what going on like

[Jonesing]

maybe nothings going on. The books where going to look ruff anyway due to oil price. Maybe they figured the oposite. Do it now while the pain is already present.

[SigmaKappa]

No company has a choice. Under IFRS impairment has to be tested when there is a trigger, in this case the future price curve has not moved back up so its not a temporary thing. As such, companies had to do an impairment test in Q3 and if future cash flows based on the new curve indicated impairment, they had to take it.

[Jonesing]

Thanks for the lesson.