RE:RE:RE:RE:RE:OK NOW WHAT HOLDING THIS BLANK STOCK BACK.?Hey Mikey! He likes it! The acquisition may or may not prove to be dilutive to current sgy shareholders. Don't forget to include on the plus side of the equation the value of the astra assets, both current, and a year from now vs the sgy paper used to acquire those assets. In addition, as you imply, ALL the sgy assets will get a valuation bump due to an improved balance sheet, more free cash for capex, and easier financing terms. So add the revaluation bump, the current and future value of astra assets, and divide that big awesome number by the shares issued in exchange. If oil drops to 50 or 40 or less, again, sgy will have overpaid using hindsight. If we stay at 60 or wowza 70, sgy will look like geniuses. Time will tell. If we double again, some dickhead Debbie downer will still be complaining.
senseimike wrote: Play nice boys.
Paul likely would have entertained this idea of buying Astra because he was worried about Surge's viability. He must have the bank breathing down his neck. This give Surge 25% more potential free cash flow with no additional debt. So this is simply taking off alot of financial pressure in favour of big time dilution. He must be having trouble sleeping at night.
This has made Surge much safer to invest in....but the upside is now only 3/5 of what it could have been if he trusted the resurgence in the oil markets.
It's still a raging buy at these prices and that will play out in the next year if oil holds up. And it will.