Granite Oil Corp GXOCF

RE:RE:Bailing out on GXO

[jerrybe]

With a quarter of the shares held by insiders, you know they will have little regard for outside shareholders. They do the minimum but after the equity raise last year, they certainly do not need any external funds...and it shows. No investors updates since early May...really left for dead...and the divco model is simply not suited for a pure upstream firm. I find it incredible that they had more than a couple of month around the turn of the year to hedge at USD55 for years to come and did not...now at $45, they are probably not covering the dividend...if oil stays below $50 for long, they will have to cut the dividend...why do they put themselves in such a situation? I love the asset that they have...it is going to be a cash cow for years to come, but at this point, I am thinking of taking a bit more "beta" exposure to oil as I think we are finally going to see the glut of oil disappear in the coming year. I know: Controversial thesis to say the least!