QuestionWhen I look back to Dec 09, 2008 news release I ask my self what has really changed since that time. (Below is that article). So here is my judgment:
Dec 09, 2008
- SP $1.96
- under managment (send those oilexco mu........fuckers to jail for life)
- no financing( or unknown)
- expected production unknown (to shareholders)
- Shelley status unknown
- Crude in $38 range
Today Jan 15, 2009
- SP $0.15 (lol)
- under administration (I believe it is a positive thing for company)
- no financing (or still unknown)
- expected production still unknown
- Shelley?
- Crude in $38 range
Since dec 09, we have same scenario exept tax selling, funds selling, fear selling, day traders.
Note: Some of you might wonder why i put administration as positive well for the past week i was looking into many sources to clearly identify the purpose of it. Found a lot of different info with different views, so i decided to bring all these ideas to one of the prof. who thought me a thing or two. This part time prof. at university, i believe knows his stuff and is very creadible around. Used to be on the floor of TD, Citi, ING, adviser to TD and right now has a small merchant bank in argentina. So this morning he told me that he delt with administration before and their main purpose 1) is to restructure debt with preserving shareholders value. He said that through his experience around 20% did liqudated but these companies were very heavily financed for the projects that failed. Make a long story short he said remember that administration is not acting in their own favour, or managmant, or creditors. It tries to preserve companies value and there is no information asymmetry in administration to administrators. The only downturn is that shareprice is very low due to high uncertainty on what the outcome will be.
Just something to share with you. Any comments? And here is the Dec 09 article
Date Posted: 12/09/2008 01:34 pm •
Oilexco Inc. shares jumped by more than a third in Toronto, after the Sunday Times of London reported that the producer of oil and gas in the U.K. North Sea is for sale.
Oilexco, based in Calgary, abandoned an effort to raise new capital and has been put up for sale, the newspaper said Sunday, citing unidentified people.
Oilexco shares gained 51 cents, or 35%, to $1.96 in afternoon trading in Toronto on Monday. The stock climbed as much as 36% earlier for its biggest intraday advance in two weeks. The company, valued at $449.9-million (US$359.3-million), has still lost 85% of its stock market value this year.
Morgan Stanley, which was hired by Oilexco in November to help find funding, has received interest from the U.K.'s BG Group Plc, and two Canadian producers with operations in the North Sea. Talisman Energy Inc. and Petro-Canada, the Sunday Times reported.
Norwegian Energy Co., which is the co-owner with Oilexco and two other companies of the Huntington discovery in the North Sea, in not talking to Oilexco about a sale of assets or the whole company, Reuters reported, citing Noreco Chief Executive Scott Kerr.
Oilexco spokesman Rob Elgie in Calgary didn't immediately return a call from Bloomberg News seeking comment.
Source: Financial Post