State of BusinessFirst of all I am not currently invested in Opti, but looking into taking a position.
The NR regarding notes issues really hammered this stock. At this price the company looks really reasonable. I'm very surprised how far this stock has come down.
On the other hand, management must truly believe in this project. They have the entire company invested on this project alone and you have to give them kudos for being able to raise the $400 million to fund the Long Lake project. The interest seems high at 9-9.75%, but if I was an investor in the notes I would not invest into a project for a 9-9.75% return if the chances of failure is great. Also, OPTI's market cap is currently just under $300 million so it's definitely inexpensive.
Only time will tell if the Long Lake project will be successful. Nexen is a main player in the project and their success rate is impressive.
I will probably wait before I take a position as this stock has not stabliized. After years of investing I've learned not to try to catch the falling knife and no doubt I've been caught a few times in the past. If this in fact is the bottom I don't mind purchasing OPTI at a slightly higher price. Also, the entire market looks a little shaky this past week.
There are a lot of bashers out there, but just ignore them. They always portray that the sky is falling when the opportunity allows them to do so. They just want to make a quick buck off the weak hands.
GLTA