SucksThis stock will languish for a long time now. Although most analysts think highly of the stock and management team, they have had one problem with CPG.... they chronically issue stock and dilute existing shareholders. The analysts hate that - no matter what it means to the stock 2-3 years out. The common comments on BNN is that Scott Saxberg has "found religion" and promised not to run to the market again - he has stated they will operate within cash flow. Ha. this has been one of my biggest holdings for some time and I am seriously thinking about dumping it all over the next month. the biggest problem here is going to be a lack of trust from the market and I think CPG share price will pay for this one more than any because I don't think anyone saw this coming., It would even be better if they had an acquisition ready to go that could on paper appear accretive - the market wouldn't like the issue of equity but might be able to digest it for a good acquisition. For Drilling??? seriously! This will go up with oil but I think as a result of the coming lack of trust (watch tomorrow), CPG will lag other mid cap oils.
Someone asked about a bought deal and I will try to give you what I know. CPG makes a deal with a brokerage to buy 650 million bucks worth of shares at 19.30. The brokerage gives the money to CPG and then takes on the responsibility of selling the stock to investors. CPG is guaranteed the money and current shareholders are guaranteed to be diluted. One person earlier said they put in for interest on 10,000 shares (I think that is a bad idea personally), but you will have to go to the brokerage that purcahsed the shares, not CPG directly. Hope that helps.
Best of luck all, but I am disappointed in this News Release and I think it will show in the stock price for up to a year for sure, unless oil does some wild things to the upside - this will now have some serious air pockets if oil takes a downturn.