RE:RE:RE:Debt and HistoryYes, it would appear that way. Financing was not managed well at all. For those first 4 years of that range you mention, it wasn't. Nor were there any major changes to the management team that I'm aware of to influence their decisions.
For 2015 and 2016 they raised money, mostly, by issuing additional shares (equity financing) as opposed to increasing the bank debt. However, throughout this period the share price was quite depressed (it was trading at approximately half of their book value). Real bad time to equity finance - should have bank financed the full amount instead.
For 2017 and 2018 they raised money exclusively through bank debt when they should have issued shares instead (equity financing) because the stock price was considerably higher than their book value for those 2 years.
For 2019, 2020 and 2021 they bank financed once again, which was appropriate given their depressed stock price. Good job there at least.
Now in 2022 they are going crazy paying down the debt when, IMO, they should just keep it flat or on a very gradual pay down schedule. I mean, they are making money on that bank debt, man! It costs them ~ 5% per year in interest, but that borrowed money is earning them ~ 20% per year returns (Return On Capital Employed). How is that a bad thing?
If they simply took appropriate actions to correct the stock price instead (to get it above their book value once again - i.e. pay a regular dividend, pressure the shorts to cover) then all they would have to do is to issue more shares to, instantly, eliminate that debt. (And will even turn a profit doing so).
*Sigh*
We'll still get our higher stock price in the end. I think it will just take considerably longer this way that they've chosen to go. That's all. It's pretty sad, really. And frustrating. I hate, hate, hate seeing those short sellers so damn comfortable here. There will be even more All-Time-High records set for the "shares sold short" count before this finally gets resolved next year, IMO. You'll see.
Westboro1 wrote: So over 7 years from the top in 2015....they continued to not manage wisely. I know prices went real low. However, were there changes in key management positions? I like what I see now- low costs and own oil service team, etc. anything else?