OTCPK:VGIPF - Post by User
Post by
InvestorSuperfanon Apr 17, 2013 6:23pm
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Post# 21278104
What a Bloodbath
What a Bloodbath This is not about the 3.79% drop in the TSX Venture today. This is not about people bailing out of Small Cap O&G Dividend Paying Stocks (RPL down another 7.5% today. WCP down only 2.6%. TBE down only 0.9% - and they are a HEAVY oil producer). Does RPL need an increase in their credit line from the Banks and the Banks are saying no? I think this would be foolish on the part of the banks - RPL is an oil production (not exploration) company with good assets producing light sweet crude. Once the breakup season is over, I think they should be able to ramp up production to newer highs and, provided they eliminate the dividend in the next month or two, can likely pay down a significant portion of their current debt by year's end, perhaps then re-examine the possibility of re-instituting a dividend. Yes, the market is punishing them for their aggressive moves that didn't pan out, but one has to wonder at what point are investors over-reacting and ignoring the high quality assets the company owns.....?