RE:Here we are againFerryboy wrote:
Here we are again, another underwhelming earnings release from AOI. No dividend increase and buybacks are at a very slow rate. And cash balance is up to $232m usd. That represents 30% of the total market cap. And they are trying to farm down on all the exploration blocks that they are invested in.. so there will be little, if any, cash requirements there. Maybe even receive some cash back.
Keith Hill stated in one conference call a while back that they would not hoard cash .. but that is exactly what they are doing. And they are not telling us why
So what are they buying? They have all this cash + credit facilities in place so the only thing that makes sense to me is that they will buy that long awaited 'producing asset' in 2024.. given that Prime barrels are slipping even with new investment. Glad to hear if anyone else has any better ideas on what they are going to do.
I have been in AOI a long time (from when my old school buddy Angus McCoss was at Tullow and involved in Kenya) but I will likely reduce my holdings unless I hear something soon to make me stay
Unfortunately I will miss the conf call tomorrow so would appreciate if someone could post any interesting comments from management ..
$230M is nothing for quality acqupisitions....they are measured in the B or tens of B.
They have enough on their plate now outside or Orange basin.
They also need to wait another 24 mths for high interest o high debt and no credit to crush zombies currently gasping for every thread of life much lime 90% of Canadian consu,ers and companies.
Interest rates are not going down we are back to normal 7-12% for high credit low leverage borrowers...cash is king again.
That are far better places to invest ....AOI seems to exist only to enrich the board and advisors....Tucker is no different than Hill....typical Canadian amateurs with no clue on how to deliver to SH.