RE:RE:RE:RE:RE:Default is likely for these energy companies? (article)
Which market ? The market that has discounted TDG almost 75% in the past year! Volume??? More reason to worry when the market price is dropping so quickly on very small trading numbers. Stock holders are panicking. Ergo, my concern. My point was whether this Cardinal/Canelson deal was good investment... period. A poor decision today is the issue...not whether it will work out 5 years from now.. Given the present world pricing for oil and the total collapse of Canadian Exploration, why would Cardinal decide to wipe out its cash and its market capitalization with this 'takeover' of Canelson? Especially, when NO evidence in the near future exists to justify the business decision. Who is Cardinal going to working for this year given that more than half of all the equipment in the oil and gas patch will be collecting rust this year. Invesco and Trimark need income producing investments for their monthly income products so TDG fits that bill. I invest in quality...quality leadership and business ecumene. Given those criteria, how does this deal add 'value' worthy of taking this chance....or should I say gamble. Remember, we have no financials to check at this time. I will be very interested in the next quarter results to see what happend to the free cash flow, contracts in hand and equipment utilization rate in the past months. Granted, if I see improvement over last quarter resuts, some improvement in oil pricing and utilization contracts, I would agree that there might be some reason to be optimistic. I will be critical, skeptical and careful until that time. This decision was a gamble and not a investment decision. A CEO and Board used investor's cash to 'double' down, hoping to trap some market share. I fail to see how doubling market footprint of 50% less business opportunity, can be considered a good business decision!