Connacher Oil & Gas Ltd CLLZF

RE: Averaging down?

[Jmarks7]

Brusa, I agree the whole issue of good/bad, honesty/dishonesty has to be looked upon as a society as a whole. I do put that responsibility square on the shoulders of leadership, the higher up the ladder the more important it is to ensure that honesty (and the perception of) is a cornerstone of any business. Working for a large corporation that prides itself on being an industry leader we do everything possible to ensure our business is as transparent as possible. Do we like it when our production is down? No, but it's better to tell our shareholders asap about any problems because they will find out sooner or later and will no doubt be unhappy if they find out later than sooner. As they make plans/purchases based on the latest information they have about the company. After all it's one thing to buy a stock based on the reality of the day than to buy it only to find out that key information of the day was lacking. I recall a month or so ago a company had a fire oversea's which impacted production, they told the public of the fire within hours of the event and explained the whole situation. Which included curtailed production for the next Q, etc. Instead of the stock dropping the next day it went up. It is my believe because investors felt they had the full story on what had happened, it's impacts and what it meant to future revenue the share price did not drop. Brusa, I'm not sure I understand your point about the investor being a gambler and thus little moral backing as management. While the investor may be greedy they rarely have the ability to change or defer changes in material aspects of a company. I can see how the expectations of such an investor may be too high and thus contribute to the stress put on management to deliver at all costs. Best of Luck to all ...