OTCPK:TLSMF - Post by User
Comment by
oilandgasmickon Dec 05, 2014 1:05pm
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Post# 23200028
RE:RE:WARNING: DONT BUY TALISMAN UNTIL IT GETS TO $3.50/SHARE
RE:RE:WARNING: DONT BUY TALISMAN UNTIL IT GETS TO $3.50/SHAREGood analysis, the company is definitely worth more than the price of its debt. Right now, if the company was taken out at this price (of course it won't be) they would be getting the shares for the price of the debt and all of the assets for nothing. Well, this is what happens with bad management but that has been beat to death here so why bother with the argument. One thing I know for sure is that starting in 2015 the oil price will slowly start to rise because much of the U.S. shale oil industry is nothing more than a Ponzi scheme. Now for the first time, your average investor has become aware of this. As cash flows start to shrink where will the new rounds of financing come from? Now that the banks and investors realize that "junk bond financing" has some inherent risks it is going to be much tougher to get financing. Some frackers (Marcellus gas I hope) will survive but most of this marginal stuff is toast. All this talk of the U.S. becoming the new Saudi Arabia is nonsense.