Debentures wrote: bandit69 wrote: Debentures wrote: I'm aware of div carrot dangling and false uses of NCIB's to appease shareholders. My observations-experience show this closer to SPAC/SPV that is an Investment Firms dream. No cheap paper, cash on-hand, and a tight float. You can disregard 2-9 all you want.
Again, feel free to send me a list of any company you can think of with less than 90 mill shares, 60-65 mill cash and no debt. crickets*
Debentures wrote:
bandit69 wrote: I'd respond to the dreamers here but I am still laughing that VLE even mentioned a dividend at this stage. Carrot + stick = a board full of suckers. lol
Wishing you and your family a happy new year. I hope it's filled with unforeseen riches.
VLE still isn't a div play despite your tactics. Enjoy the rest of the week :)
there's no tactics. Just observations and experience. That was my point, they are not a divi story...at all..... and that's why I was laughing. It shouldn't have even been mentioned.
I do wish you luck and you might do well on this one but the odds are highly against it, that's all.
So on one hand you want to appear as taking the higher ground with well wishes, then on the other hand you let your Canadian passive aggressive traits surface by asking for a list to try to show me how smart you are.
- This is your personal perception. I always wish anyone I interact with well despite differing opinions. I do challenge more effective points rather than points that come across as complaining/ranting. Anyone sitting on cash in a low interest rate environment and not getting that money working is an idiot and needs to be replaced. Even bigger idiots are those that think it is great to have cash sitting in the bank being chewed/burned away by inflation day by day...oh...and paying nice salaries at the same time.
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In order to get cash in the venture space you need to dilute. - Sure anyone sitting on a cash hoard in a low interest rate environment eroding the earnings for years with no return on investment isn't a smart move. The salary component is controlled with 1.5 million per Q being burned on a C-Suite with a lot of credentials. I've mentioned this having 6-8 month runway of "Show Me". I maintain this approach personally.
- The reality is the company just sold Turkey asset which should close in the next month (Jan) or Shells pick (March). Take your pick.. I would give management the ability to close the deal and ramp up for M&A Activity. I have seen "value" traps in the past, but I have also seen where share price is pumped to utilize cash + shares in a deal efficiently.
- There isn't exactly a lot of funding flowing into the O&G Sector - it's been dispropotionate based on Sector. You're seeing more gold, bitcoin, mushroom and US pot stock inflows. No sweat if you have access to capital and can raise funds. They didn't make this cash by their genius business operations (as is obvious since they've now sold the money losing assets they had spewed were so good). If they made this cash on their own business accumen by actual revenues and profits then, I would be impressed. Aside from that, people with finance connections simply doing financings (with other people's money) by selling a story, is unimpressive.
- In my view, they were smart enough to sell assets with enough cash on hand to open the opportunity to a sizeable purchase. They would of been worse off doing this for 3 more years burning cash with no return on investment like you mention. 60+ million is nice in an environment that has lacked M&A activity. Cash is a component of any significant M&A deal. The next step is creating relationships with investment banking firms - the share price will need to get higher to make a big deal / be prudent on dilution. Almost every junior miner has been, or is, in this same position. Cash, no debt...because nobody will lend them money....because they have nothing to lend against other than a nice(?) story. I've seen many over the years with cash no debt promoting their "trading for less than cash" story as to how good of management they have in the business but, the cash burns by paying salaries and overhead. Investors know it. Someday when you become an investor you will understand this. The longer the story goes on the more salary collected. It's not because they are prudent capital allocators or geniuses and were able to build that cash from operations.
- They were prudent to not blow all the cash. The assets currently held are long, but could form a nice side story.
- You are speaking in absolute sentences i.e. every junior miner, cash, no debt. Please provide the board a list of miners, oil miners, pot companies, tech co's, grocery stores.. anyone with the criteria of 60+ mill cash, no debt and a float under 90 mill?
If you are so sure of this play, did you put every dollar you have in to it then? are you swinging for the fences if it is such a sure thing as your arrogance indicates? If not, why not? crickets*.
- I have added this to my holdings based on the SPAC/SPV type fundamentals and the belief of M&A activity will happen in 2021 for beat up Energy companies. My holdings match my risk tolerance.
-Do you have holdings in the company or come here just to chat? If you need a friend feel free to DM me. More than happy to chat.