OTCPK:SQZZF - Post by User
Comment by
rudyforeston Dec 12, 2007 12:35pm
195 Views
Post# 14008244
RE: Was this financing expected?
RE: Was this financing expected?Well I certainly didn't expect it, although I havn't reviewed the balance sheet from last quarter. Management must be thinking the stock would be suported from the interest in the Biliton wells as they are drilling - so a good time to raise funds, if they are dry then we have some powder to continue. However on such an iliquid stock the potential financees are probably in the process of two things:
i) shorting the stock at these levels and will cover when they participate in the financing, and
ii)keeping the stock down as it is easier to participate in a $1.50 financing than at $2.20 financing with the same fundamentals.
very disapointing, but I will use the dip as an opportunity. I can't believe this stock is trading at these levels. Last time I crunched it, trading at $12.00/bbl in the ground. Most acquisitions around $20 and these guys are just getting going and are a class act.
Going to be one of my biggest holdings soon.