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Charles Taylor Group Plc V.MQL


Primary Symbol: CHTYF

Marquee Energy Ltd is a Canada-based company. It is engaged in the acquisition, exploration, development, and production of oil and natural gas. The company receives maximum revenue from oil and natural gas sales. The company's core operations are in Michichi area.


GREY:CHTYF - Post by User

Bullboard Posts
Comment by socalbobon Mar 14, 2012 12:45pm
212 Views
Post# 19668822

RE: RE: RE: Closing March 15th:

RE: RE: RE: Closing March 15th:

Ronin, don't get me wrong, I like the metrics of the deal for MQL and the cash flow provided and additional upside.  It's just reality that MQL shares could be under pressure for awhile if all these new shares are on the sell side.  The PrivateCo put itself up for going back to Sept/Oct 2011 so those shareholders were seeking a sale and an way out of their assets, so a large number of those shareholders may just want to cash in at $1.85/share and move on, regardless of the upside everyone else sees for MQL going forward. 

 

That is why I agree with Igstar, time for MQL management to really promote is now in the next couple of weeks and hopefully good drilling results and production news from 2012 recent activity will keep those newly issued shares from being dumped. All  MQL shareholders want the added upside of MQL and potential for much higher share price in 2012, 2013 etc.  but unless these new shareholders are convinced to hold, could be a problem in the near term, which could then limit the ability of MQL to do additional PP if strategic acquisitions present themselves in the coming months.

 

In no way am I saying MQL should not have done the deal, just saying very critical for management and their bankers to now support this well, or all current MQL shareholders could get become long term holders if the price tanks.  I'm sure plenty of old Skywest shareholders were starting to get optimistic of increasing share price and holding, but won't necessarily hold again if it appears MQL is dropping down below $1.75 again.

Bullboard Posts