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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Comment by bshort92on Aug 11, 2012 12:10am
262 Views
Post# 20206741

RE: The combined entity

RE: The combined entity

I do not have a dog in this discussion (fight) since I own neither GO or WFE. But I am going to invest in Long Run. Just consider that both entities just announced Q2 earnings. Combined the two firms earned over $50 million just last quarter. Now some may posture that both firms would be better off going it alone, some say the deal was forced upon one or both sides but when debt is at a level that you can't attract capital from lenders and diluting the shares is not a viable option then a merger based on two firms each bringing impressive attributes to the table needs to be considered. I don't perceive the boards of either entity to have an agenda to fleece investors after all they hold significant equity stakes and have respected reputations to preserve in the space. Just take a breather and consider the high netbacks, the robust earnings and that huge 1.8 million acre land position of a firm with 126 million shares out and 26,000 boe/d of production. At the end of the day the dissenters have little to offer the discussion. Be analytical not emotional.

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