Comment On Analyst's CommentRe: Canaccord Adams analyst Frederick Kozak said "time is ticking" for Oilexco.
"They've got a great asset. There is a tremendous amount of value in what they have discovered," he said.
"The big question is who is going to be willing to actually recognize the value and pay for it?"
Potential buyers who may have made a play for the company under better economic circumstances may be asking themselves, "why the Hell would I buy the company? I'll just wait for them to go down," said Kozak
There is an answer to the question of why a company would buy Oil rather than waiting for it to go down. The answer is that striking a deal with Oil, by definition, guarantees the acquistion of Oil (or partnership with Oil). In bankruptcy sales, assets aren't free. To the extent that the assets have value that are attractive to companies in the industry, their will be an auction.
So, its not simply a matter for waiting forthe company to go down, (unless, of course, a suitor for the assets is the only suitor).