Bridge Resources Corp V.BUK

Backout = NG futures

[kade1]

I guess this is really that same as buying futures in natural gas, effectively we are saving some of the gas from Durango to bring to market at a later date. This great if the price of NG goes up, but not a total loss if it drops IMHO.
Its so quiet on this board...Hello..

[Mrigs]

Was busy... until I had a stupid comment. Sorry to much stress....I still love this company.  Nice to have income coming. Nice to have a stock price not in EXTREME decline. Nice to have a plan to expand.I'm long on BUK

[mjl777]

Hello Kade1. It's so quiet because everyone is under water right now. I agree. Having the cash flows spread out isn't such a bad thing but it does impact the valuation in the short run. The backout turned BUK into a longer term play. Those who hold in these volatile conditions will eventually reap the rewards.

[kade1]

Mrigs, I doubt your comments are seen as stupid and do not believe it has much to do with how quiet things are, Cheer up!Hey mji777 I agree that the SP may be temporarily supressed a bit but surely we could expect compensation in some form of dividend over the next while, is that thought lost do you think?. I am long on BUK and down about 20% at this stage but I am attempting to avarage down

[mjl777]

I don't think any ST compensation will be in the cards. A portion of the company's cash flow will be directed towards the retirement of LTD which should be renegotiated and amortized over a longer term if the backout doesn't move in the company's favour. I'm not certain how much flexibility they have to renegotiate this debt with RBS. The balance will go towards operating costs