Level of debtForaco is quite indebted. From what I understand, long term debt is due next year but still they are buying a few shares on the market instead of preserving cash. Anybody has any insight on the term and conditions of the long term debt ? The financials do not yield a lot of detail.
Typically I would stay away, however co CEOS own almost 40% of the equity. Therefore, it would be safe to assume that they will not dilute existing shareholders if they refinance.
Per looking at last quarter, rig utilization is at 50%. So with all commodities on an upswing, I guess that their utilization could shoot up much higher ? And if the market becomes tight, rates could also improve. Any ideas as to free cash flows these guys could generate in a boom market ?
Anyway, have been niblling a bit, but seems to me that if they take care of the debt, we could see excellent returns.
GLTA