OTCPK:BLKPF - Post by User
Comment by
pablo87on Oct 25, 2018 3:33pm
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Post# 28873559
RE:SELL PRICE $1.85
RE:SELL PRICE $1.85For that to happen, they need to adjust the exchange rate of shares to 0.4 IMO.
It's not only that you're being diluted by a company that has very limited upside but its the the fact you're getting 0.22 of an overpriced IPCO share. Today's IPCO trading price is where it was at in December 2017 (grosso modo - even though there's limited trading here it does trade in Sveden) but since then they bought that asset from Cenovus for $512MM (+ the $50MM!! WTI sweetener, LOL) - 6K heavy oil, 18K dry gas. A conservative 20% loss on that asset (baytex et al are down more than that) is $1 an IPCO share.
The proper share exchange rate IMO is 0.4 ($1.80 to $4.50).
The problem is they lost money on the Cenovus deal so they need to get a bargain somewhere else which of course no arms length party is going to give them so they do this transaction which would be fine if we all owned the same % of each company but we don't. I already explained who owns what and the background of the PXX directors.
PS - the TD analyst was very wrong by the way - tender is absolutely the wrong idea - its either vote against it (they already control 40% mind you) or sell when it was in the $1.39 range.