GREY:ZARFF - Post by User
Post by
not4anymoreon Oct 23, 2016 12:25pm
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Post# 25375680
Waiting on WTI...........
Waiting on WTI...........The properties that were sold guaranteed survival of the company. For 'the time' they received a good valuation. ZAR is now a play on WTI. Should WTI go to $60-65, ZAR is a different company and share price will reflect this. At that time management will have more options available to them. One of these would be to convert the debenture to common shares .... which effectively would be share issue (therefore no debt). IF this could be done at share prices that minimize dilution ($2-3), ZAR would have cash in the bank, solid cash flow from higher oil prices and the funds necessary to promote growth. Even the possibility of paying a modest dividend might be an option. More importantly, ZAR would have a better profile to others that are acquisitive. All IMO... good luck to all!