GREY:ZARFF - Post by User
Comment by
Cardboard1on Jun 14, 2019 9:00am
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Post# 29825713
RE:So here it sits.
RE:So here it sits.Mistake I made in getting into this at all is the size of decommissioning liabilities. I am not sure that a bid would be sufficient to pay it all off including the small U.S. loan. Valuations have totally fallen off a cliff. Moreover, the Supreme Court judgment about priority did not help at all.
Then you combine this with a company that is barely free cash flow breakeven in a $50-60 environment and you are looking at a disaster.
So whether one bought shares or debentures may not matter that much at this time. Could turn into a zero if they force a sale.
CEO is clearly on the wrong track IMO. Priority should be cost cutting, especially G&A, harvesting whatever free cash flow possible and wait for better days. Seems to be the wrong man for that who wants to keep perks and salary.
Cardboard