RE:RE:A picks-and-shovels oil stock in deep value territorypennydredful wrote: Anyone care to speculate why Akita would commission such a report ?
As somebody who may be missing an opportunity here ( still pondering) , I'll take a stab at why.
It can't be anything to do with the future NCIB ; why would drive up the price the company would have to pay?
“The economics of building new equipment, considering that a new estimated AC triple rig build costs in excess of US$40 million, and the economics of most mergers, unless they are distressed, simply aren’t sensible right now,” Reynolds said. “In my perspective,
the optimal strategy is to build up capital and establish a position of strength in a strong market until undervalued targets present themselves. Until then, debt reduction makes more sense for AKITA to focus on.”
The company , if it's looking for acquisition targets in the medium term , i might want to pay for their purchase with shares or shares and cash?
Or it could be simply , the controlling shareholders would like their holdings to be worth more.