RE:RE:RE:10 year stock Performance says it all !!!!
I'm no admirer of Gamba but in his defense, he has allowed shareholders to anticipate a brighter future because of the gas acquisition. Where would the company be now if it was still dependent just on oil? Likely down at the bottom of a well trying to find a way out of their predicament like most oil juniors. It's easy to forget that even large cap companies that used to trade in the $50 to $60 range only a couple of years ago dropped to under $10 bucks at their low in late 2015.
The market never looks at gas companies with the same respect and value as it does pure oil companies. Maybe it has something to do with historically natural gas being sold so cheap in North America? Add to that the sentiment for commodities since 2011 and the low regard for oil stocks and particularly oil juniors right now and you have a situation where any junior is lucky to have survived let alone grow. Because of their oil well shut ins CNE is basically a company operating at half potential. Gamba wisely won't dip into their oil reserves until the price rises to where it becomes profitable to do so. Hopefully, investors won't have to wait too much longer but until that happens the strategy is to concentrate their financial resources where they can do the most good for shareholders and that is their gas holdings where they have experienced phenomenal success. The kind of success that investors had hoped the oil side would have brought had the prices not crashed but that's water under the bridge.
What is important now to consider is that CNE's gas fields are not only supporting the company but allowing shareholders to witness the true growth and expansion of a company. When the new gas pipeline is ready for business CNE will have the gas to fill it at a nice profit. If by then oil prices recover it will be a huge double revenue stream that the market can't ignore. Add to that success with their shale projects and there is the potential to finally see a junior operating in the black. Wouldn't that be something? A small cap actually making a profit for its shareholders.