Saturn Oil & Gas Inc T.SOIL

Is the drop justified

[smallcaptdr]

Raising capital always hurts a stock but this got kicked while it was down, always count on the shorts coming in like prey. we'll have to see if tomorrow has another leg down because this is closing at the low and that dosent bold well for tomorrow. JMHO

(always DD)

[Puma1back]

They always fall back to the issue raise price so I don't think there was anything special here. It doesn't hit the momentum though- they needed new oil here as the rest of the stuff is pretty much hedged well below the spot.  i think there is a good little company building here.  

[Puma1back]

Well Cannacord are the 2nd largest buyers in the last 2 days - bagged 350,000 shares net at $2.73. if their trader was shorting into the > $3 trades earlier they made some good little  bonus cash for a summer time fun party.  finny, National are the biggest net sellor - who uses NB , retail? Dont think they have a large oil Exploration & development trading desk.

[argon12]

Canmord needs this issue to be closer to $3.00 for this to be considered a Success because it is a Sub Receipt. Oil is killing it. Cannacord needs SOIL to be a real success or they lose more credibility in the corp finance department. Imo

[Puma1back]

We are only a day into the release argon - i agree with your comments, but just needs a bit of time to clean out the effects of the bought deal shares. assuming oil holds - seems reasonable- i would expect we need a few weeks here to rev up the accumulation side of the stock.  

[argon12]

Canmord and Eight Capital have gone through the green shoe. This is going is going over $3.00

[Theconsortman]

With the warrants have they capped their upside to $3.20 a year out after closing?

[downtozero]

Current market cap $90M Bought deal to add 50% growth, $260M More than doubled number of outstanding shares. Market needs to absorb 43202733 shares over the next year, 66% @ 2.75, 33% @ 3.2. This does not seem like a good deal for current shareholders. Better hope oil prices stay high.

[downtozero]

Also, $200M loan at 15% interest over 3 years. 6.5% given to banks to make the deal. That's more than 20% off the top not going to shareholders.