GREY:TRIAF - Post by User
Comment by
AIGswapon Nov 30, 2011 7:35pm
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Post# 19281232
RE: RE: $1.1mm for a section at Lochend
RE: RE: $1.1mm for a section at LochendCapital raises are to be expected in the junior E&P space, so while I am disappointed with the dilution, I would be more disappointed if they maxed out their credit line and then did an equity deal at highly distressed prices (I see it all the time in the sector). I appreciate that they keep the balance sheet strong and it seems like they want to keep adequate liquidity which is smart in these volatile markets. As a junior, sometimes you have to get what the market gives you. And what other junior has a net working capital surplus besides TOL?
That being said, I share your frustration with the persistant low valuation of the name. But things are looking up these days with positive results from Lochend and the exciting new Dunvegan play, so I'm sticking with it and believe that in the long term, the market will recognize this value (that or they'll get taken out)...