DilemmaThis is my first post:
I am undecided on how to vote. I invested several years ago. One of the key reasons was Rooney, on one of the conference calls, said they could cover the operating costs, capital expenses, loan payments AND dividend payment at $40 oil.
Along comes Waterous and things change. Not for our, the minority shareholders, good. The biggest negative, I believe, was the company had to refinance bonds due to change of control covenants - switch lower interest long term debt with higher cost short term debt.
This triggers the dividend cut which in turn triggers the stock price decline. The stock chart clearly shows this.
I respectfully disagree with Morgan, the current CEO, who believes the stock price decline is caused by the heavy oil differential and distribution issues. Every business, on the planet, goes though some operational difficulties. I believe the differential and distribution issues are temporary and will be resolved. Morgan should review the one-year stock price chart.
We are in a higher priced oil environment, which is trending up.
Is Waterous a crook? Is this all orchestrated? Maybe. They have not been candid in the presentations over the past year. The cost of bond refinancing should have been #1 on the agenda; it was buried / hushed up!
Now if this is a scam, then the board would need to be involved. I believe Waterous bought in 2 new board members plus himself, total of 5 board members. So Waterous controls the board.
I understand the 2 board members that remain, from Rooney era, are elderly and honorable. One would think they would kick up a fuss, if they believed we are getting taken. Also, I understand the CFO, who owns a lot of stock at a lot higher price, is voting for the deal.
I'm convinced that if Waterous had NOT entered our lives, the stock price would be decent and we would still be getting our dividend.
I was thinking this morning it would be great if there was a review rating system for the Waterous's of the world, like the reviews when you buy something on Amazon. Stay away from products with low star ratings.
As of now I’m undecided!