WestFire Energy Ltd T.WFE

"Strategic alternatives" review

[eebler]

https://www.stockhouse.com/financialtools/sn_newsreleases.aspx?qm_symbol=t.wfe&newsid=8387018

Seems to be a little on the impatient side to be looking for strategic alternatives when they haven't given the merger and recent land-acquisition time to even play out. I'm all for increasing share-holder value, but this makes it seem like they are now desperate to realize value in the short-term instead of generate value for the long-term.

eebler

[habsfank]

Interesting release. It was mentioned in the AM news this morning too. It's good to see that the company is active in trying to create shareholder value/buzz although I do agree with the previous comment that this seems slightly premature considering the activities over FY'11. Still, it's re-assuring that the stock is greatly undervalued.

[Majormac79]

it might be a good time to accumulate before any takeover offer comes in. Surely there will be a Chinese based buyer eyeing this up.

[dmacd]

The company is on solid footing and does not need a transaction. That means they will not sell for a significant discount to fair market value. There may have been some approaches, at less than fair market value, or a major shareholder may have been pressing for this move. I look forward to some nice moves on the SP in the near term, as a result. Fair market value has to be in the $8 to 12/sh

[wayned]

This pretty much screws people who bought at above $6.50 when the company said they were greatly under valued AND increasing production . Thanks a lot.

[MTPockets1]

The timing of this initiative has me scratching my head. The company was positioning itself for self financed growth and now this? Sooooo, did they get a whiff of someone trying to grab their company up for a fire (westfire) sale price and force a fair value offering? This should get interesting. MTPockets

[poubelle1]

I see things differently.I think sprott got scared about the economic situation in 2012 and decided it wants its money out of this investment. WFE represents tool large a percentage of its assets and I think they just want to be in cash so that they can pick up assets real cheap when the next downtourn occurs.

[dmacd]

WFE has stated that the company continues to be business as usual, during the process, which is a sign of their strength. Perhaps WFE simply want to prop up the SP at the request of major investors. Sprott actually sees oil as a strong currency hedge, and surely likes the longer term prospects. They are probably pressing for action, but I see them more as

[habsfank]

This production/forecast analysis from earlier in the year is a pretty interesting read if you've got the time. https://www.northernpatriot.com/REPORTS/viking-report-macquarie.pdf If someone did throw a low-ball offer at the company, it would make sense to go fishing with this type of release as ill timed as it seems.