Post by
Valueinvestor9 on Aug 24, 2015 5:36pm
Please be careful.
Dear Investors/Shareholders
I have been questioned as to why I have focused on Kicking Horse, and my answer has been to point out the following:
Near Term Expiries. The company is facing a significant amount of land expiries in less than 1.48 years;
Management owns less than approximately .005 of the shares outstanding.
The company has significant debt in a challenged time. Look at Delphi and how that stock is being weighed down with its debt.
Market support is very interesting. I have been tracking this company since June of 2015. I started discussing the challenges of this company in early August. All I have done is ask investors to ask the tough questions, make sure their broker/adviser is investigating the company. So that you are well informed in a challenging time. Oil is on a serious downtrend, will this company make monies through the period.
My main questions is that the number of wells that have been drilled and completed to the production that the company has does not demonstrate positive economics. Please correct me if I am wrong. It will be interesting to see if the company can survive this serious downturn and maintain production. From my review they are unhedged. Revenue will be declining dramatically.
I have seen posts where individuals indicated that there would likely be a takeover bid, very unlikely to occur in this market. It is like catching a falling knife, way too dangerous.
Why does a stock hold up in a market when almost every other energy stock is declining in value? You should ask that question and also pose one question, is it logical that in a day when oil falls more than $2.00 a barrel the stock goes up in value. Just ask your broker if that makes sense.
I have as of yet focused on some of the activities of certain Directors, and also the geologist who has the GOR. More to come.
I am interested in watching the progress of this company and also to see if it is the new energy stock to move completely opposite to the oil sector. If it does, for sure it will either have unlocked the genies box or it is going to become the focus of shorters.
Tomorrow is looking to be another very bad day. I wait to watch how Kicking Horse performs.
Investors, call your broker/adviser to ask them to do their own due diligence. Remeber that when a company does a financing, they will defend the price to hold up the financing. You have an opportunity, make sure to discuss it with your broker/adviser.