GREY:SGLRF - Post by User
Comment by
cenderon Jul 31, 2014 8:27pm
272 Views
Post# 22800684
RE:Penny stock
RE:Penny stock"Non-core asset sales are supposed to deleverage the balance sheet but given that they have only
reduce the underlying assets and production with a corresponding increase to debt, they do the
opposite. "
Perhaps they have tried to sell some significant assets (red earth, pembina ? ) but are just not getting
any respectable bids -understandable with the glut of companies unloading even at today's high oil
prices's . I am geussing they have offers for about half the price expected and can not stomach
pulling the trigger ,prefering to wait and hope while debt grows ever bigger and production declines .
Unfortunately the waiting game has not paid off and things happen while you wait (waterflood nightmare !) ....so it is reaching the desperation stage and they will be forced to sell some large assets at big discounts .