High Arctic Energy Services Inc T.HWO

Knock the stuffing out of this why don’t we.

[blackwolf25]

Back to .49? this looks like Feb / March 2020 all over again.  NCIB incoming, wait for it.

[Stonksonlyup90]

No NCIB incoming.. no interest from management. Investors running for the hills, rightfully so!

[colourama]

Are the sellers forgetting that the company has $42 million in net cash? That gives effectively, what $16 million for non-cash assets that are generating positive cash flow if I am not mistaken? (even if only one rig is currently operating). Regardless of the grievances about management, I feel that the risk/reward is quite favourable at this price, provided we are patient.

[Stonksonlyup90]

No doubt that it's 'cheap', but cheap is all about perspective. Stock price will continue to get hammered as their is no interest in this management team - it's clear they don't have shareholders best interests in mind.. so why park your money there? 

[Stonksonlyup90]

They've done a lot of damage to their 'image'.. and a lot of this money won't come back.. ever!

[JonathanJSmith]

I guess for the now 5%+ divvy. lol. These guys better up the divvy to 1c and fast. What they're allowing here is a disgrace. Sub $1 soon? :(

[Stonksonlyup90]

Why up the dividend to 1c?.. it's just a 'Return of Capital' at this point, without the benefits of management deeming it as such - so you continue to pay tax on the divy even though it's not coming out of earnings. A NCIB/SIB would provide a non-taxable return to shareholders - seems a no brainer.. but this management team just doesn't get it..

[JonathanJSmith]

Upping the divvy to 1c would yield a divvy of over 10% (at today's price). That in itself should be enough to raise the stock price (somewhat). Insofar as the NCIB, they can only buy a couple of million shares before Cyrus is at ~50% ownwership unless they buy from them; it's not in shareholders' best interests if Cyrus owns more than 50% of the company. That being said, a couple of

[Stonksonlyup90]

Cyprus Capital would be idiots to not make a move to privatize this company before opting for a dividend increase (as that would just distribute more of the cash hoard to other shareholders).  Perhaps they are pushing down the stock price and triggering stop losses to do just that.. Anything below $2.00 would be robbing other shareholders blind - but at these prices an announcement of a $2

[colourama]

One thing which is still not clear to me is exactly the rational for selling the Canadian assets. Why sell them coming up a year ago now to sit on cash which goes unutilized? If Cyprus Capital offered $2/share, then that would cost them, what, about $52million? But since the company has $42 million net cash, that makes about $10million purchase price? Seems like a steal for them. Surely they must

[Stonksonlyup90]

All speculation here, but I do wonder why they conveniently decided to write off $130M in Canadian tax assets (non capital losses).. that alone holds a LOT of value, but is not being reflected on the Balance Sheet.. part of the scheming on a take-private?  I would suspect if taken private, they would spin off the remaining Canadian assets/sell those non cap losses and then this would become

[AVALONSHARK]

Low LNG prices can delay the Papua LNG project by a couple of years. That would mean HWO will be burning cash to maintain equipment while keeping the dividend alive. The reason for selling canadians operations to sit on cash for indefinite period of time tells how in-competent management is.  They have a lot of cash but zero value creation, hence this state of the company. Q1 would be a

[Stonksonlyup90]

I don't blame you AVALONSHARK, you've brought a lot of good insights to this forum over the years. The time to sell was back in January/23 when it was very evident that Management had no plans for the cash hoard. They sold Cdn operations back in July/22, they knew the $$$ they were getting all along, yet here we are 9mnths later and they still can't make a decision. Their intentions

[Northforce13]

You don't pay tax on return of capital dividends, they just reduce your cost base