GREY:ZARFF - Post by User
Comment by
Cardboard1on Jan 21, 2019 8:56am
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Post# 29258559
RE:RE:RE:RE:RE:RE:RE:RE:Zargon hires Macquarie
RE:RE:RE:RE:RE:RE:RE:RE:Zargon hires Macquarie "Getting parity out of the debentures in Zargon was never realistic since this debacle started. Getting 70 - 80% would be best case scenario. Bailing at 30 - 35% makes no sense."
Do you mean the Canadian oil debacle (TransMountain/crazy discounts) or this transaction?
My view is that you could get back par but, it will take some time. For that we need the company to generate cash flow, cut costs further, repay its small debt and reinvest intelligently into its operations.
Need to wait out for better days to return. It is sheer stupidity to sell the company now at bottom prices while there is no urgency: no liability of any magnitude coming due.
If Hansen can`t do that then he needs to be replaced! He keeps on saying that the company is too small to be public, blah, blah, blah. Maybe it is too small to keep paying this level of G&A?
And oh yes, we need management to stop doing things like hedging most production at ridiculously low price as they did in H1 2018. That certainly did not protect the company. It deprived it from very useful cash flow when the going was good.