Re: Finance - Scott
in response to
by
posted on
Nov 24, 2010 03:45PM
Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta
Hi Scott
You have valid points here .If indeed this is the outcome this company is almost fully in the bankers hands.
Supposing that's the outcome from the selling of the assets.That means once again a lot of shares extra in the market.The effect on eps is in a downspiral again.That means they need to pump up a lot more bps/d to raise cashflow and some luck with the bitumen price .
So dillution works also backwords because earnings need to be divided among a lot more shares.So I don't know when this spiral down will be stopped.Why was the sp with only 1 pod at ramping up worse 5 $ before crisis and now only 1.12?
These guys must not forget their shareholders or funds , even they never seen the company ,are each part (depending how much shares )of the company.So while we have to sit and wait and see how management is messing around with our investments and on the other hand made some foolish decissions which brought our investments in jeopardy but for their part always building some security in the form of options.
Trough discussions we had on this board with different guys from everywhere many decissions has being seen tricky and not so wise ,then sometimes you're wondering how it comes these decissions are made?
If we should hold a poll how many of us really trust this guys for financial decissions I bet it would be low after we have seen since 2008.
Is current value these days that low because the bankers bet on further dillution?
What if they should wait and first take aim on improving production to almost design capacity.If economics pick up next year and probably more in 2012 wouldn't that we wise?Why can't they just wait?If we stick at same amount of shares and production can be reached full speed and also with better bitumen prices and next year higher reserve reports then sp must follow .No??