RE:RE:RE:RE:RE:RE:RE:Dennis Gartman on CNBC: The Worst is Behind Us
Oli, I am in the same position, got in about 2 years ago and averaged down based on management statements. The only way this (governance) willo change is a shareholder revolt to get the Chairman out and have an independent be elected the Chairman. If, per Perdi, insiders make up 11%, it leaves an excellent opportunity for the 89% to kick them out. I should also point out that they have given themselves 5-7 years when options expire. That is a long time to cash in when options are handed out at low prices. Normally options have a 3 year expiry. Because of the long exercise period, the share based compensation that gets amortized is much higher, hence the big losses after EBITDA. In the long run, it works out provided the options remain unexercised. With a long expiry, if the options are exercised, it dilutes the stock, affecting CF and NI per share negatively, which leaves the SP lower over the long term. I have noted and mentioned before that management grants themselves options at cheaper price when their higher priced expire. This is theft. Options are granted for performance in the future i.e. they cash in if they perform within 3-5 years, which is fine. Why they grant themselves so many options in the past 18 months is mind boggling and should ne investigated. Also note that they are compensated for the short term according to the AIF and there is nothing to gauge them for long term sustainability. I hope this helps, that is why I was questioning your oil price increase timing. If you are holding for 10 years, there is nothing to indicate there will be a change in management's attitude except acting as parasites on the back of shareholders. The alternative is to have someone take over but the Board and management will reject before being brought to shareholders. Of course, a hostile takeover may work. I say all this in simple English but will be too complicated for Perdi to understand as he picks snippets and does not understand how one thing has an impact in the bigger scheme of things, a domino effect. I wish you luck. I am contemplating cashing in for a loss at a time when technical warrant. I would rather recover some cash and reinvest in something else, maybe TGZ, same situation as PTA with cash, no debt and a very low cost producer and extremely disciplined and ethical management with low compensation. The only difference; TGZ produces GOLD, not OIL. GLTA