Seeking Alpha Article and Question for SheDrills!HI SheDrills.
I refer to this article by SeekingAlpha last Friday. https://seekingalpha.com/article/4614710-cgx-energy-more-good-news-from-guyana
What do you make of what the writer is saying? In particular the writer is concerned with a few things such as the company is not a going concern. He premised that the reason why the stock price hasnt responded to the discovery is that the company has no money fo fund offshore wells and an FPSO, and that even Fonterra is not large enough to do that.
Please comment in particular on this and give me your thoughts "The problem with all of this is that there is a limited market for the discoveries noted so far. Probably a neighboring operator might be interested. But it would be rare for another company to just "barge in" and want to purchase what has been accomplished. The neighboring operators are very large and will likely "play for keeps"."
Given the above, what do you - or others- think of the prospect of a "buy out" that we have been talking about and agreeing that this is the only option now on the table. Even in a buy out situation, given that all they have is discoveries, and no cash flow, it dosent really put them in the driving seat in getting shareholders a fair market price.
The other issue I am concerned about is dilution in the form of a reverse split. I am thinking that even Fonterra will lose out big time in a reverse split but given the number of shares outstanding, this eem likely.
No matter what I am holding but these seem like real questions that any informed investor should ask themselves and have answers to.
Would like your perspective or anyone's thoughts
Glta
GT