Verrry Intersting!!! Usually when a company loses a high level executive, it's time to dump. Here, we see the stock price actually up a penny. The problems here are well documented: Jennings most recent update advises that TID is required to make quarterly payments on the PRINCIPAL of $13 million starting Q4 2013 versus cash flow estimates of $11 million for that same Q.
Obviously, this company needs a huge infusion of equity to make a dent in the debt. I am totally baffled when I read that buying previously rented equipment will improve cash flow! Duh, you don't have the capital to finance this? In the current configuration of the balance sheet, you need to raise equity, not spend it.
I've made money on this name previously, and would welcome the opportunity to get back in again. Despite the 20cent price, what I need to see is some kind of plan to address the looming PRINCIPAL REPAYMENT cliff. I've seen this story before with Niko, Petrominerales, etc.
Long story short, this stock is a better buy at 25 cents than 15 cents.
P.S. Would also make sense for this company to roll back 1 for 10. Wonder if the co. has considered a rights offering to allow suffering shareholders to "double down" via a convertble bond that allows the compant a lower rate of interest, say 5%, with the opportunity to convert to equity at, for instance, at $3.00 per share. Just an idea, but what alternatives have we seen from management?
For a penny stock like this, I would love to see a company website detailing every single company rig, it's day rate, employment status, etc., etc. What we have here is a pure speculation as to whether this outfit will be here next November. There are no competitive secrets to keep secret - either we make money or not, and lately we are not. If Rig X needs $40,000 per day to break even and the market is only $32,000 per day, give us the bad news and let us go long or short accordingly. The company owes us this basic information.
PPS: Had assistace writing this from Robert Mondavi