TakeoverFreedumb,
I agree with you a takeover wouldn't factor the debentures in at all but if I am right with my speculation about JC Anderson then this management team would want to recognize Mr. Anderson's investment during hard times. The concern I voiced to Rock is I am hoping that he is wrong in a takeover because I used to own shares of a company named West Energy who had a lot of potentials in the Cardium play, and they were taken over by Daylight Energy then Daylight got taken out by Sinopec. As a shareholder I made money on the takeover but I felt West's management and board got a sweet deal on the sideline and worked hard to get the deal approved. So I think if West shareholders would have voted no on the takeover, we as shareholder would have been better off in the long run. Therefore I would rather have a slow and grinding ride up with AXL's than a quick 30% to 40% increase due to a takeover. Not so long ago I owned Renegade and its been taken over now and I was happy for the takeover to take place because I did not think Renegade's management could have done much better.
As for AXL's takeover, I would be extremely disappointed simply because I honestly think AXL's management is on the right track, right now even though they made some strategic errors in the past, this company is having good success with the drill bits and this is just the beginning so if the two new long reach horizontal wells and the new 10.6 (net) wells are successful for this new drilling program, I will be well rewarded as a shareholder for my investment and I can see this stock to be above the $1.55 by January 2016.
So this is why I am a long term investor in this one: if you buy today June 02,2014 $0.225 and sell January 30, 2016 for $1.55 your investment period is 1 year and 7 months therefore:
- return on investment is 588.89%
- Simple Annual ROI is 371.93%
- compound annual ROI 238.34%
of course these kinds of returns are based on good executions from AXL's management team, I happen to believe that they will pull it off and I don't think this will be hard to achieve because they understand the Cardium play and they have been together as a team for over 10 to 12 years.
Regards,
Fearlessgg