Lucero Energy Corp Com V.PSH

RE: AGM

[RJ18]

Buyouts tend to be at a value much less than the price a company could reach if left public and it grew on its own for a few more years. Assuming PSH is on a growth path, a buyout would be a small cash hit for stock holders right away, but not nearly what it would be in the future if left public in shareholders hands. In this market, where oil and gas producers will probably fly over the next few years because of product price increases due to shortages, worlwide instability, etc., going private could work against the insiders taking it private. In the short term, they can scoop all of the revenue, but to grow they will either have to do it slowly with cash flow or they will have to finance somehow. Financing may not be as easy if private. Then, if the insiders are sitting on a lot of shares and the public goes on a buying spree like they are likely to do when these little oil juniors take off, they can make a lot more money selling back into the open market. So what is the better choice? Go private and collect revenues slowly and steadily over many years and keep it all, or stay public and let the market feed them cash much faster and at much higher prices when juniors take off. If it were me, I think I would keep it public and see where the market takes it. There are many more options down the road if left public.