RE:RE:RE:An important shareholder ....What misinformation?
I know exactly how many Strathcona shares I will have after the take over is completed. The PIPE share price going up or down from now until then will not change that number one bit.
The other fact is that no one knows what price SRL will begin trading at let alone what price SRL will be trading at a month or two after the dust settles. The PIPE and Strathcona boards do not know, Raymond James and BMO do not know and all the experts posting on Stockhouse definitely do not know.
During July, before this deal was announced, PIPE was trading mostly in the $2.25 to $2.50 range. That is what the market thinks PIPE is worth. It was good times last year for early investors when natural gas went up to $9 and PIPE briefly traded in the $5 to $6 range. That is not a fair valuation now. AECO is at $2.50 in an over supplied market. Another warm winter would not be good. It could be years before natural gas pricing returns to the levels seen last year.
PIPE trades at a very low EV / DACF multiple. The fires this spring may have only briefly shut in production but it showed the risk involved in having all of your assets in the same geographic location. Both parties agreed that becoming part of a large company like Strathcona will allow PIPE's assets to be valued at a higher EV / DACF multiple with less risk. I agree.
If you see this as a horrible deal, sell and do not look back. I have decided not to sell because I see the potential of a heavy oil focused company with long life assets during the early stages of an oil bull market. There is more growth potential and less risk compared to PIPE continuing as a stand alone company.