RE:RE:RE:RE:Winter is coming...FreeCashFlow wrote: Yes it did trade at 90 cents though for a day and then sold down to 86. So 50 percent is an exaggeration , 25 is not though . Every other producer said they are doing buybacks . Every other producer carries debt but every other producer made efforts to pay shareholders for their patience . Phil gets no credit for anything ... he is paid to run PNE and he needs to pay shareholders . They paid themselves with shares options that dilute holdings and creat expense and that's all ok for the millionaire insiders ... so just buy back stock to please shareholders or cancel your options but they didn't cancel options did they . They got paid first ....or is
my opinion wrong again ?
You are right with all of what you say and I definitely agree with your comments regarding options. It is typical business theme for management to feel more worthy than shareholders...always. Only Buffett truly understands and cares for shareholders.
However, this one likely has the greatest leverage out of most of them...more bang for the buck in my opinion. They do need to pay off the debt. Interest is high and banks are just not extending credit lines to energy co's for small caps especially and this puts them in a precarious position (again) if something unforeseen occurs. Granted, they also made the decision to take on so much debt and it is easy to do when capital flows (and anyone can look like a genius doing so) freely but not anymore. Hopefully they've learned their lesson.
PNE has always mentioned they were building a dividend model business and they've been dangling this carrot for many years so it is understandable when investors are agitated. If they do not follow through on this for yet another decade then I don't think there will be any carrot left to dangle. ha!