GREY:CAZFF - Post by User
Comment by
perdikaoilgason Jul 03, 2014 1:33pm
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Post# 22713639
RE:the raise
RE:the raiseLet's get realistic. It was impossible for the stock 9for any energy stock) to fly from C$0.2 to C$0.75 in just two months when nobody knew it before.
Caza had zero coverage until May 2014, no matter how undervalued was.
Such tremendous rise from 0.2 to 0.75 happens only with the biotech stocks.
Thanks to Value Digger from SeekingAlpha who discovered this stock, the awareness rose dramatically and the stock rose from C$0.2 to C$0.4, which was amazing in just two months.
Caza raised the capital with a small dilution at C$ 0.33 which is fine.
They did not go to the bank debt which is fine too. This is typical and this is how any energy company works. Since CAZA is a small strong growth company, it should do it like this.
The insiders also bought at C$0.33 which sounds great to me.
On top of this, Caza's stock currently trades at 4.5 times EBITDA for 2014, which is obviously very low.
Yorkie is not a big deal anymore. They are almost out, they have converted 90% of their shares, they have sold some of them, and they want the stock to rise too for the shares they still own. Their interests align to the shareholders interests.