RE:RE:UGR Deal longterm Makes Sense.bonjovi501 - (2/2/2018 1:16:44 PM) RE:UGR Deal longterm Makes Sense. TonyDj.....I have no problem buying the UGR properties but it was not worth 60% dilution of PONY. Patrick bragged on how PONY had 50 plus years of inventory and we were part shareholders of UGR anyway. Just wish we diluted 25% instead of 60% and the market if you remember punished us big time because of this dilution. If I remember we did a bought deal at the same time at $5.60 or around there and just were at $10 share price before that. I just hope Patrick never dilutes again.
before a resource company can make money, it needs to acquire assets;
then those assets generate cash flow; it doesn't get any simpler than that;
the deal was done right, under the circumstances; if pony paid with debt, it would be raked over the coals even more, just look at peyto; as it was, pony paid mostly with shares, at 5.60 or what not, and now we're at just about two bucks - so basically, Pony got the UGR effectively at 130 mil - instead of whining about dilution, you should buy more shares, because the UGR acquisition has over the last six months effectively become a huge bargain, due to being paid for with shares;
lots of so-called "investors" including some fund managers have a very short sighted view of economics; they view markets as a reflection of economy - that only holds true in long term, certainly not in short term, ergo the volatility; these same "investors" basically have no patience and will loose out in the long term; commodity cycles have long horizons relative to the current make-money-this-instant sentiment;
if you are trading, you shold love the volatility;
and if you are truly investing, you should love the price
not sure whether traders will be rewarded in the long-term - getting it right all the time is tricky;
on the other hand, if you are investing at these levels, it's hard to go wrong in the medium to long term; all you need to do is look at a 10 year chart of any gas stock, and you will know exactly where Pony is headed; maybe sooner, maybe later, but certainly eventually... the only game changer would be a takeout, which would be unfortunate at these prices; but if that happens, just take the premium and roll it into BIR or AAV or VII or CR or PEY or .... well, you get the point;
I personally see very little downside here - we are trading pennies; in five years we'll be trading dollars....