Cardinal Energy Ltd (Alberta) T.CJ

Two outta three aint bad .......

[rodster55]

Let play a little game of bash management since they have driven then share price from approximately $14 dollars to fourty cents and back to ?

1. Billionaire takes a large investment of tax loss credits for pennies on the dollar and says management must invest also because they are not aligned with shareholders.  Bullsheet as they are dumber than a three dollar us bill and who exactly is running this company ! Fifty cent warrants with 10% financing for three years cumlative maybe more.

Please keep it point blank form as some smart people are still here including Nutall !

IMHO

[rodster55]

2. OK, no takers so far ! There has been massive capitualation in the oil price over the last 9 months as  everyone can surely see.  Why would management give the same financial terms 8 months later when the entire market has changed ?  Didn't they pull convertable debentures because they not in line with current market conditions ? Why the double standard with your major

[rockman998]

I agree, it doesn't look good for shareholders. My guess is I think this was probaly agreed to when the original financing deal was done. What the 10% does it allows him to finance his whole deal at a lower rate and the 10% will cover all of his financing costs for the deal. So in a sense he's in for free. His only exposure is that he would have to guarantee his financing and with his

[Rational43]

The Whales are always going to get special deals when they come in on a distressed company.   However, in the here and now, CJ is in much better shape by giving that piece away, but getting $72 for almost all of their oil, than the companies who get strong armed by lenders into hedging 50-60% of their oil for the next few years at $52 to $55 a barrel.   The amount

[rodster55]

3.  As the two other responses were not bashes technically ?  What both posts confirm that Cardinal Energy has one of the lowest decline rates in the industry.  They claim to be a dividend paying company but only pay out to management and banks ! Management had nill hedges going into the biggest oil price decline in history.  It is not managements job to provide a secure cash

[Kontrary]

The reason that the stock price dropped to 40 cents in last year's economic climate was that the cash flow to debt ratio was way out of whack due to the severe drop in oil prices. CJ's Management spent most of the year fighting with their bankers and staving off bankruptcy. Now that they are cash-flow positive once again, I can understand why they are debt-averse and are iniitally

[masfortuna]

It is safe to say that you don't think management is "up to snuff" and you make several good arguements. I cannot say I am aware of all the details and as such will refrain from actually posting a reply to your questions as I feel they are meant to be rhetorical. I will add that if you are unsatisfied with the company you could sell your shares and walk away. I have sold shares in