Zargon Oil & Gas Ltd ZARFF

RE:RE:RE:this quarter June 30th 2017

[pablo87]

The only way out is an asset sale or transaction and there is too much inventory for sale and new production coming on line atm.  Otherwise the debbie debt or something else may eventually massively dilute shareholders.  Fundamental problem is they don't generate cash at these levels to pay debt down. Unlike a Pxx which does generate $$$ - which is why its up 15-20% recently ( but was as high as $1.65 before) while everyone else is down.

My mistake was thinking if they only did this or that but they don't change unless they're back is against the wall (stubborness) and/or because they realize they can't compete with new production like husky heavy oil or brazil offshore or... - its either cheaper or has better market access or both?

Either way, their strategy becomes to let it drag on waiting for higher oil prices which is basically the only thing will lift the share price up.

I think the trade to recover small Cap losses is to look for companies that generate real cash today after sustaining capex and dividend (for those dumb enough to pay them in this environment though that speaks to stubborness as well).