RE:Told you TSX sucks And that’s the truth. The latest example would be Renegade Petroleum. Front Four started a proxy war & then capitulated with TD Securities & a two bit penny stock called Alexander & literally stole Renegade & formed a new company called Spartan & we small Renegade shareholders got hosed sincerely. Thomas Bud the CEO of Renegade sold us out & now sits on the board of Spartan Energy Corp.
And to boot you have the Nuttle all over BNN pumping SPE like no tomorrow. SPE only pumps a measly 10,000 BOE/d; has 264 million shares out; and has no valuable assets because the former Renegade mgt. sold them all off. The existing wells are old & their lifetime is limited. SPE pays no dividend; has no growth & yet has a market cap of 859 million dollars with a book value per share of $2.53. Its price book valuation is $1.26. What a joke.
In order for Spartan to double production from the meager 10,000 BOE/d to 20,000 BOE/d it would have to seek monies of over 700 million plus for good properties & that would not guarantee double production. Just imagine how many shares would have to be issued to get this kind of capital.
The point being; how can SPE be worth more than LEG.? Simple – “MARKET MANIPULATION.” TD securities has a buy rating for SPE – no dividend, no growth, a mere 10,000 BOE/d output & 264 million shares out. Do the dd. How can any rational person say Spartan is worth more than Legacy Oil & Gas. What is more amazing – where are they finding the suckers to buy SPE. It’s just a matter of time before the bailout begins & it will be the small investor as always who gets burned.