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RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Post by bplondonon Jun 22, 2015 11:07pm
194 Views
Post# 23857876

Relax, be patient, there is no imminent takeover....

Relax, be patient, there is no imminent takeover....I could be wrong but I don't think there will be any takeover of RMP in the immediate future. 

Why?

Because RMP does not need to be taken over, has no debt problems, is cash flow positive even now and is in very good shape. Hostile takeovers are very rare in Western Canada and recent takeovers have been on companies that actually wanted to be taken over. In other words, their survival was at risk. Quite simply, this is not the case with RMP. They're in good shape, and their shape is only going to improve dramatically with stable, or stable to improving oil and gas prices. 

As such, I believe management will make it well known exactly when they wish to be taken out and that's when it will happen. Don't think it will be any time soon. They've done this 3 times before and the companies were all sold for in excess of 1 Billion $ and it's pretty conceivable that kind of # will be achieved once management does what they want to to with this company. That's well in excess of $8 share and management didn't want to dump out at $10 last year; even with lower commodity prices I expect them to deliver value here when you look at what they have and you can rest assured they know what they have. 

For short term traders that's a bit of drag; for anyone with a more medium term to longer term outlook (ie. investors), it's a positive IMO and, again, I admit fully that I could be wrong. 

As to Goldman being a big buyer on Friday, my money would be on them covering shorts that day. They were probably heavily short having early and full knowledge of the elimination from the index and taking full advantage of it. Wish I'd done so as well but I'm not that smart or privy to that kind of information. 

But I wouldn't see Goldman buying on Friday as any particularly great positive for the stock. 

Patience is required here IMO but ultimately I think it will be rewarded. The current stock price makes no sense, but the market is not always rational. 
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