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Claren Energy Corp T.CEN


Primary Symbol: V.CEN.H Alternate Symbol(s):  CNENF

Claren Energy Corp. is a Canada-based company. The Company's principal business was the acquisition and exploration of petroleum and natural gas properties.


TSXV:CEN.H - Post by User

Comment by gopatson Jun 19, 2012 4:09pm
187 Views
Post# 20031510

RE: RE: RE: Coastal had/has potential

RE: RE: RE: Coastal had/has potential

I'm sure you just mistyped the word "above".  Clearly for NCIB to NOT be dilutive the buy backs must be below NAV.

CEN managment is demonstrating that they believe the stock is priced below its value.  Their aggressiveness shows that they want to buy as many shares as they can below the stock value and they obviously have the support of the major shareholders.  I think it also shows they believe this to be a temporary issue for CEN.  It makes me very bullish.

I have known of other NCIBs which I did not support.  These were done be companies that did not have very much cash and it was obviously a bandaid being applied to a large gaping wound.  In those cases if I still held shares the NCIB was a sign of desperation and I bailed.  For example if ARN were to do a buyback given their lack of cash I would sell immediately.  

The big difference here is CEN has the cash, have not had success getting a 2nd rig (yes I'm annoyed at them for that) and therefore their cash flow is far outstripping their expenses so why not take advantage of your cash on hand to buy back some of your undervalued stock.  

I guess I'm a guy that quite quickly moves forward and doesn't dwell on the past.  I have little patience with bemoaning a decision that has already happened.  So MGH sorry I got short with you (hows that for a half hearted appology)

Regarding management greed.  I would say they may suffer from this common failing of many management.  That said I don't believe their compensation to be out of line with other companies I know.  The buy back has not come with any insider selling so I don't see any conflict there.  I think it speaks of how bullish managment is on this company that they continue to hold their shares and in many cases continue to add during this time of extreme weakness in so many stocks.  And Calif - If you can't buy as many shares as you wanted because the buy back is supporting the stock:  I can speak for all who have held during the fall by saying Toooo bad :)

 By the way Calif.  I didn't remember you were in this stock.  I've been in many of the stocks you've posted about over the years.  Nice to see you here.

Scott

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