Arcan Resources Ltd ARNBF

RE: RE: RE: RE: Stock being held back

[rockman998]

LongGlueStick

Why would I disappear. Obviously if the stock goes to $2 I'm wrong; but that's no reason to disappear. If there is a buy out thewhole board will disappear. The idea of a discussion board isn't to create the herd mentality, I can get that from watching BNN. You provided reasons why you thought the stock would go up; which is great. Most of the posters on this board don't provide  reasons other than just because they said so; which is an opinion but not much of a reason, it's only hope. The shareholders underwater on the stock price tend to reply on hope.

The facts are ARN is a poorly run company, as evidenced by the stock performance and ARN's over leveraged balance sheet. ARN over spent on infrastructure and gambled on rising oil prices. The gamble didn't pay off the stock went from $6 to under $1. The farm out has occurred out of necessity, not by choice and it doesn't solve the existing debt problem. However depending on the stock price, a trader can still make money on it short term. If the price drops back to the 90 cent range I may buy again (depending on timing and market conditions). This is an extremely high risk stock and I would not stay in the stock for any extended period of time. Any investor has to be aware that a stock issue could occur (if they can find someone to underwrite it).  

I would not be in this stock when ARN reports their next quarter the risk is too high.

ARN may have to renegotiate their credit lines after the next quarter's results and hopefully the results are better than the last quarters.