OTCPK:VGIPF - Post by User
Post by
InvestorSuperfanon Apr 15, 2013 3:48pm
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Post# 21256334
The Last 6 Months
The Last 6 Months When you are a small cap O&G company, purchase new assets which add to debt, and simultaniously implement a monthly dividend, that's a lot of risk. If they wanted to be a dividend payer, fine - but make sure debt is well under control - perhaps wait a year. I think the dividend should be eliminated, but the woes don't end there. The $13 million sale of non-core assets seems like a fire sale, and it won't put much of a dent in their debt. A Jan 30 news release mentions there is a "Restricted and Performance Award Incentive Plan" to be proposed at the next AGM. Not sure how much of a bite this will take in terms of cash / share payouts to management. That said, they seem to have good quality assets - the question is how much can they get per share in a takeover offer at a distressed time vs.hanging on, developing their assets, and getting a better price for the company at a later date?