RE: RE: RE: NOG makes it officialI resectfully dissagree LittleJoe
Here is your post Little Joe:
"Not necessarilly. Taking stock for dept is better than nothing. Generally not a good sign--tends to show co is short on $$."
Nog has access to the 10 Milion line of credit available and they do still have cash on hand from the financing and from before.
So NOG has the ability to pay for the services if they chose. In my opinion they are saving money from all the EXTRA BILLABLES that have been charged as Well #1 took longer to complete.
Now why would a contractor take stock over payment unless something is up?
From NOG's perspective its better to keep cash on hand as there will be more expenses yet ahead and if they dont have to tap the LOC its better. There is no need to pay interest.
From the creditors standpoint they also have a tremendous amount of upside potential given the fact that they know what they are dealing with.
I only see this as a positive.
The best analogy that I can draw is that of a poker game.
You are in a poker game(you are the creditors). The dealer has given you the advantage of not only seeing your cards but also the dealt cards of the other contestants. So you know what you are up against before the flop.
Is it a guarantee of success knowing more than you should know in advance? No
However its always better to have more knowledge(due dilligence) before entering into a situation than less. To get as many creditors to take stock as they have in my opinion is simply amazing. Maybe we should check into Donald Bensons background to see if he has any experience in hypnosis. It is quite possible he has simply put these guys to sleep and mind altered their opinions. Or maybe he hasnt had to convince these people. Maybe they have openly agreed to take stock as they know they will make a killing.
Cheers.