RE:RE:Cashless Stock Option GrantsWe hold just under a 2% stake, US based-unhedged on the CAD, investors with an average of about .64 on our position. If not for our low cost basis, we would have puked this out very long ago.
We have spoke with analysts, patent attorneys and service competitors....EVERYONE agrees that Packers has an almost 0% chance of success but appealed for the sake of leverage based on other patent cases pending involving several of the co-defendents. Once the appeal is denied (maybe 8-12 months for a court date), Packers will owe ESN al legal costs which could run 5-8M Cad.
ESN mgt is using this as a reason to not buyback stock or seek alternatives. They claim the case pending would result in a deep discount bid for the company. Complete BS.
Trican on their recent conf call stated they had been pitched several frac deals by US pvt equity firms but they have declined the steep prices. They said they weigh doing any M+A vs. the book value at which they can buyback company stock(currently .95X book). I doubt they'd bid for ESN unless their share price was above 4.25. STEP has been creeping higher and figure they might be interested once the integration of their recent US fraccer buy.
In the meantime, will only add more when ESN is in the low .50's or lower. As Ive made it clear to Garnet...we aint going anywhere.
Cardboard1 wrote:
"We witheld all votes for the BOD. How the instl base can continue to vote for these clowns and expect different outcomes is mindboggling."
I did the same and then sold my stock after seeing the voting results and quarterly results. No analyst asked any question on the call which is quite telling. Only a hostile bid could create return which is not a good risk/reward IMO and what are the odds with the Packers appeal?
I am sorry to say but, Canadians in general are sheeps. Take a look at the Cona deal that just got approved and voting numbers. The Spartan deal is even worse with insiders reaping large reward and will get approved. Then we have Crescent Point with dismal performance where all management nominees were re-elected despite challengers.
It is hard to find a sector, I don't think it exists, other than energy where investors have suffered for so long and so deeply. Yet, investors and yes institutions stick with the same people who are more interested in make-work projects, preserving their status and jobs, taking advantage at the expense of shareholders vs going to people aligned with their interest.
With little to none class action lawsuits, prosecutions, known activists, it is obvious that insider trading, corporate abuse and even crime will continue unabated in Canada.
Cardboard