RE:RE:Suncor looking at more depressed companiesfirst I'm not pumping MEG and until recently I was short MEG. actually I'm still short NOv 6 calls at a price of 0.73 cents which I will gladly take toay instead of waiting for profits down the road.
if I pumping I wouldn't be pointing out MEG's debt and the cost of said debt.
my only point with my takeover post is very simple. MEG is just too small to survive a prolonged downturn in oil prices and even though they ahve done a grea tjob inowering costs, it's just not enough to ever make a real profit not until oil prices recover to 60 wti plus.
yes we might see 60 wti somewtime in 2017 but only briefly since all the frackiers will coem back up and drill babyu drill is their moto, well maybe I'm over simplying it, but usa lower 48 produciton will start to climb back up.
so my thesis is simple, MEG and it's wonderful assets are worth more to a bigger oilsands company that can and will increase produciton in a meanful way, which MEG can't do without 150 million capex, which means dilution if they want to raise money or selling access which means increaesing operating costs by 3-5 bucks per share.\
so the way I see it it's time to maximize shareholder value and put the company on the block or call clayton riddell and Paramount resources who own a nice chunk of shares and do some kind of JV sharing deal to increase produciton in a meaning ful way.
either way there has to be a deal, be Imperial, Cenovus and philips 66, suncor, or even CNQ.
just an opinion, take it with a grain of salt