Post by
Shoulders on Oct 27, 2014 5:42pm
Show me the money
I returned to this board after a 2 week break waiting to see that in fact Maha dug deep and the deal is funded and closed. Perhaps I missed it because everything is very quiet and all I see is ridiculous commentary on China, airlines and Paul Colborne (didn't know he was involved in PXL).
I see words of assurance from indoubtgetout that of course Maha will fund the deal because they're big boys. Well the math didn't work when they announced the deal and it still doesn't work now. They may still fund it because I believe they do have another week. Alternatively since PXL has no real choice they may have to extend deadlines or change terms but since their shareholders approved the deal would that mean a new approval process would need to be scheduled. Either way there will be little confidence in the players to actually get things done.
Very unfortunate. I don't own it but have had occasion to look at it over the last few years and each time I could not find a reason to buy. When I saw the Maha deal announced I thought this could be an opportunity. It does not appear so.
No matter how optimistic people are about the 'strong' oil price, and yes Paul Colborne is a very successful businessman but to extrapolate that just because Paul and Surge are able to make money at current oil prices therefore this is great for PXL is a leap of faith wider than the Grand Canyon. We have all seen smart people make money with weak assets and in bull markets weak management makes money with great assets. But in this market incompentent teams (PXL management) fail when they own bad assets.
If Maha does not close the next sound you hear will the be running to the door as their lender steps in.
Comment by
8675309Jenny on Oct 27, 2014 10:47pm
are you a qualified engineer or geologist? you obviously have written letters to the engineers that have prepared the reserve report on the assets and expressed your views. now that would be the laugh