Post by
pablo87 on Apr 03, 2017 1:16pm
Unloaded my position...for now
I'm reasonably confident about the ops and exploration from what I can tell... - worth more than the market cap it seems - but the business and financial mgmt, not at all (this I'm sure of). I think they're setting Josh up to fail (would make complete sense).
I'm not comfortable with a company that not even 6 months prior got its plug pulled by the banks, is forced to sell assets at distressed prices, retains the same bankers, retains the same CFO, and has no cash flow forecast for 2017, capitalizing like crazy (relatively speaking) on the back of bank loans. What could possibly go wrong???
There's either going to be another firesale causing event (the bank reducing the line), or they're going to have raise money to make up for the unknown soon to be shortfall which of course will be dilutive.
At least gas is firming up so they may be able to sell the gassy stuff for more than a song. But they're not going to raise much money from this.
ideally they provide a cashflow to year end, cut back on capex (they're valuing the co. on the land anyways), get a half decent price for the gassy stuff and raise some debentures that are not too dilutive and more importantly, safer than the bank. That's a lot of ifs.
Comment by
pablo87 on Aug 18, 2017 2:07pm
Giving myself a pat on the back - lost a bit, could have lost a lot more.