Smart Buying on Vulcan!It is interesting to watch the buying action on Vulcan these days...someone is doing some smart buying.
It appears that the brokers are sitting there waiting for shareholders to drop their offers down to the $.50 level, and immediately someone comes in to grab the shares....smart buying for sure.Having said that, I would expect sellers to soon realize that if they hold tight these brokers will have to show their bids, and higher prices will be in the cards.In any event, these shares are going into stronger hands for a solid move forward very soon.
Buckeyejay, I get your point now. You're saying that the recent deal with Daval is tatamount to Vulcan being able to reap 50% of the realized dollar value of the potential of the offshore properties....thus is analagous to Vulcan having doubly increased it share float.While this argument seems valid, Manzare17's take on this view is correct.Should the seismics not prove the existence of anything worth pursuing, then Vulcan will have given up nothing, and there has been no dilution to current shareholders.
At the same time, seismic records of this area that currently exist must have been an enticement for Daval to want to partner in these properties.
I see this deal as a milestone for Vulcan and the West Coast offshore
in that this will be the catalyst that spurs other companies to put their cards on the table with respect to their intentions/plans for this area.Companies like Vulcan that are getting a head start in the area will undoubtedly reap many of the lucrative rewards that lay ahead.Shareholders should be well served by this groundbreaking deal for Vulcan.
Len