RE:RE:RE:Good Idea - Bad Timingthetruth777 wrote: MarijuanaTrader wrote: Chapter 11? Not with all that money there have in the bank and cash fow positive wells many others not this one I can't see PXL PTA and INA going down the tubes but ELW no way
They lost 6mil last quarter. They have tiny production and at what prices are they cash flow positive. All that money in the bank is supposed to be for new acquisitions not for just surviving in poor oil prices...
Disclaimer:
Everything I have posted, recent posts and/or older
posts and/or any of my public postings are and have
always been *My Personal Opinions and Speculations
Only.
As always, do your due diligence before making any
investment(s).
-glta TT777
Last quarter they did not own any assets, and the majority of the loss came from share-based compensation payments - not actually cash burn. The only problem with this one, is they are probably kicking themselves they didn't wait another month or two before buying the properties. The $40/netback they once held has been reduced to about $10/bbl. Had they waited, they could've negotiated a fire-sale of a bargain, or just held off entirely and sat on ~$.20 cents/share in cash. I would say OIL has bottomed overnight around $63.70ish, the vampire squid has probably now gone long after giving their clients the $60 target. If oil can at least make it's way back up to at least $80/barrel and hang there, this one has a good shot. At $70/barrel, it's a gamble.