RE: RE: Elgen are you mentally (reply)...I agree calling names is childish...
Here is my opinion of taking on debt from a previous post of mine...Just an opinion though!
Management could have took on debt to finance the rest of the developing operations, but whats the advantages of this? Tax benefits? They have enough deferred tax assets at the moment from all of the accumulated losses over the years. Don't need anymore as we can not use them until we turn a profit. Some are about to expire if not used anyway. Another equity offering seems to be a decent idea and has the least financial risks. Worst case scenario, the market tanks, debt comes due, and we have a company that stands to possibly go under like last year before they announced the equity offering to repay the debt incurred to purchase New Elk. Sure we do not have any operating leverage at the moment, but until we see earnings, I believe I would rather see it that way. If things are going good with leverage, things are GREAT! If things are not going good, we are going to wish we never heard of Cline.
Last year, the stock was at $.40 a share when they were at risk of not paying back their debt.
But lets all be grown ups about this and present logical business positions on this wall!