CGX Energy Inc V.OYL

My Take

[taal]

On Sept 24 Fronterra announces a rights offering...an exciting one at that where All shareholders could participate as long as you owned stock as of Sept 29...There were app 45 million rights available at conversion price of 1.63 for a total of app $73 million..and if shareholders didn't want to participate then Fronterra generously agreed to step up to the plate and convert All unexcersized rights...Now you had to own shares as of Sept 29 to qualify for the rights.Volume up till that point was very low so I'm assuming the majority of eligible shareholders were existing shareholders.Exciting times ...We had a floor price of 1.63 Guaranteed by Fronterra ...wow we all going to make money on these rights...NOT...Within 2 trading days up until today we have Never traded over our Guaranteed floor price.of 1.63..You would think if Fronterra is willing to spend $73million Can. and pay 1.63 then the share price Must be worth Much more ...Not.. Here we are close to the middle of Dec on one of the most exciting wells Anywhere .And we sit at $1.03 Never ...never would I have imagined this scenario. Right from the first announcement of this offering Fronterra had No interest in letting the existing shareholders participate. From 2 trading days into October till today we have Never traded higher than 1.63.. So since October till now this share price has been kept under wraps.. These gangsters have kept a lid on our share price and someone has been accumulating shares for 2 and a half months...and am pretty confident the majority of shares have not been bought by new or existing shareholders...No promotion...no updates...not a word...This send a clear and loud signal that Fronterra did not want the retail shareholder participating in the rights offering....they don't want them buying shares...(why would you with the price tanking.) They must have and do have a pretty good idea what they are sitting on..Trust me if anything is worth having you and I are the Last to know..Theyve done a marvelous job of keeping the share price Depressed along with its Shareholders...As Oil run has said Make Sure you have a seat at the table...The song is about to end... Good luck to Everyone.... ..

[Dirksidetrack]

I was just reading up on the Canadian Unlisted Board (cub.ca) yesterday. From the "Canadian Securities Course" chaper 1, page 15 "The unlisted market does not set listing requirements for securities on its system (hence the term "unlisted market") nor does it attempt to regulate the companies. Most of the securities sold on the unlisted market are more speculative, and in

[madmike0]

"However, CGX may be in the form of an unlisted security like a derivative or other form of security. I guess that the dealers must create new financial products out of oyl shares. So, if it's true that oyl outstanding shares may exist as a component of other forms of non-equity security," What are you talking about???? Even more outrageously we get the " Been reading

[Harel1976]

Its funny how blind investors can be justifing their investment, fec is paying overprice because its money going from one hand to the other, fec needs to keep cgx from bankruptcy on failure because it owns cgx!

[Dirksidetrack]

Well good morning to you as well MM. I'm just trying to figure out how this company has a 303 million dollar deficit in shareholder equity as reported on their financial statements and MD&As. That means some people actually lost a cumulative 303 million so far out of their pockets. The only people on this board who have stated that they have lost are Dfly and Clouder. So to me they are

[Mat1791]

You need to keep reading... Your grasp of "shareholder's equity" is incorrect.  Hint, it's not literal.  

[Dirksidetrack]

Total Assets = Liabilities + Shareholders Equity. Therefore Shareholders Equity = Total Assets minus Liabilities. Ok not literal you're right. But if oyl goes bsnkrupt then it becomes literal because once assets are sold off and creditors get what they can then shareholders will be down over 303 million. Note that under Canadian law creditors get paid first. Shareholders last, if there's

[Mat1791]

Correct.  Theoretically... However, this is a prospecting company, so most will always have higher liabilities than assets until those assets are proven to be worth zero or $$$$ Asset's bookvalue today is not tomorrow's value.  If asset value goes up significantly due to a success... Equation will look a lot different. Secondly, public shareholders' gains and losses are a

[Dirksidetrack]

Well then thank you for that Mat.Yep that changes over time. But as of Nov 3, 2021 interum filings that's what it was. Shareholders equity = contributed capital plus retained earnings. Minus 303 million at that point in time. That can quickly swing into a surplus on a find. Just reacting to MM with my comment. That's allAlso note that public float has gone way up. I interpret that as super

[Mat1791]

Dirk, Current share price of a company is very rarely book value ( shareholder's equity / outstanding shares) Current share price is based on the markets perception of some future value.  99% of shares trade at values based on discounted future anticipated value.

[Miftee9]

Dirk, in theory yes.  However, assets are recorded as book value not fair market value.  For example, if you own a office tower and you bought it for $1M you would record it as $1M asset and $1M SH equity. (assume you have no other assets or liabilities).  So you have $1M asset and $1M in SH equity.  Over time that building appreciates in value so now it is worth $10M. 

[Dirksidetrack]

Ah ok, now I got it finally. I am pretty thick sometimes. Lol. My financial sccounting book does cover realized and unrealized gains and losses. Like, if they sold Corentyne right now, after paying what they did they would incur a realized loss. But if the market values what they have now after spending all that they spent as greater than what they spent then they would book an unrealized gain. Ok

[CLOUDER]

yup, makes sense to me to.  HEY if  they (fec) put up that they spent  $300  U.S. in guyana as FEC,  + PRE,  did you know that CGX spent about $100 million canadian ish before they were taken over by FEC/PRE.  CGX has gotten about $450 million  canadian redemshions coming, or the company that buys them,   with discovery,   MAN. 

[Miftee9]

Like I mentioned before.  Downside is $1 maximum, upside is $20+.  I like that risk reward given all we know about the area and the concession.

[Miftee9]

Yes.  So the balance sheet only tells part of the story.  It is an exploration company.  So they usually show large losses until they hit it big or run out of money.  Fortunately, someone is not letting it run out of money.  Lets hope they hit it big and then we wont have to worry about running out of money for a very very long time.  All the best to everyone.

[Dirksidetrack]

Yeah my financial accounting book Nedles and Powers says that all that they need to survive is working capital. Liquidity to pay the bills on their own without having to borrow, issue more shares or sell assets. JV or farm-in. Who will it be? Some jerks trying to steal the assets at cheap price by trying to crash oyl. Not working. Oyl got serious sp support. Company with minus 48 million deficit

[Mat1791]

Dirk, The tech sector in early growth stages typically will have your above situation. Don't worry about the balance sheet. We are paying for what we think they will have, not what they've booked today. Jeez, negative shareholder equity never stopped Amazon's shares. 

[Dirksidetrack]

That's because Besos produced top line, on the income statement, revenue growth. My book covers that as an example of the imporatance of top line numbers even if bottom line net income is negative. All it means is that Besos was investing money made into producing even more future growrh. In oyl's case, even if bottom line shows losses becsuse they're spending money on development and

[Miftee9]

I believe that was before the rights offering which is why they needed to that.  However, since then they likely have spent all that money plus more that FEC is going to have to front at this point.  I think it is pretty crucial for them to hit otherwise they will have to give up a lot in order stay afloat, like a significant portion in a JV.  Dont think FEC will do another rights

[Dirksidetrack]

I'm betting on they got a good well now. At least enough to attract big money. Let's face it, any big "whale" like Nexen (CNOOC) could swallow fec and oyl with it in a hostile take over right now. Who the heck is driving the sp down and why? Something is in the works. It'll be good for oyl shareholders but the question is how good. In a hostile takeover what premium would

[Mat1791]

So... Your reasons not to own CGX, are a result of incorrectly applying blue chip fundamentals to a speculative, wildcat, penny? And your reasons to own CGX, are based on the posts of a B.S. baffles brains artist? Wow...

[Dirksidetrack]

Wow is right. Incorrect application of basic accounting financial anslysis to a speculative penny? Lmao. I haven't done that but many have and have lost hundreds of millions. So why would I listen to them. And what is wrong with Dfly's geological analysis? You make these comments petsonally attacking the source and not the veracity of his information itself. Is he wrong? Lets hear your

[Mat1791]

Dirk, this was your original post, "I'm just trying to figure out how this company has a 303 million dollar deficit in shareholder equity as reported on their financial statements and MD&As. That means some people actually lost a cumulative 303 million so far out of their pockets. The only people on this board who have stated that they have lost are Dfly and Clouder. So to me

[Dirksidetrack]

No. My original post was the following and I got hammered immediately: Dirksidetrack (651) User Actions December 11, 2021 - 09:03 AM 136 Reads Post# 34221432 RE:My Take I was just reading up on the Canadian Unlisted Board (cub.ca) yesterday. From the "Canadian Securities Course" chaper 1, page 15 "The unlisted market does not set listing requirements for securities on its system

[whyworry]

"Time to dust off the "ignore" feature but I'm afraid with the majority of quality contributors to this cesspool of a board being already chased away there won't be much to read." MadMike, the aliases you are referring to must be approaching 1000 posts since their creation in August.  This is impressive to say the least, not only in the sheer number of posts

[Dirksidetrack]

Wow! Have you read Madmike's trashing of the company? We were just trying to mitigate his and your's damage. Your current damage is trying to discredit us knowing that myself, Clouder and Dfly are oyl bulls supported by comments with credible sources that indolent people like you can verify for themselves. Quit trying to trash oyl please!

[AnMar]

I'm afraid you are mostly correct MadMike; it is a case of "the inmates are running the asylum now".