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I’d do a bit of research on that 4C
To create dilution, they can simply price it at a steep discount, which is what they did last year (50% discount) - share price doesn't matter.
Good job you traded out on the sly then Wiggy as it drips it’s way back down. The lower it goes the more dilution it creates when they raise the $50m (£38m) this year, £68m Mcap at present. Although the company has warned investors of that scenario.
Please mention the $50m all you want. Since amtech started mentioning it the shares have doubled :)
Just don’t mention the $50m Nemo, Wiggy will attack. He’s a winner in life you know.
Amtech has been saying the possible dilution keeps a lid on the price at 3.7p, 4.7p, 5.7p, 6.7p, 7.7p… sooner or later he has to get something right by pure chance. I suspect the willingness to asset purchase may change if/when the psychology of the market moves from anticipating a cyclical reversion in oil prices, to acceptance that structurally higher prices are here to stay.
Or, someone else could be interested in the assets........ That's were the real excitement would come - but I'm not going to hold my breath.
But, I have been in the oil business for over 40 years and seen a fair few acquisitions and consolidations, sometimes the only way to grow quickly is to buy the assets of another company - along with the company . However, given the lopsided distribution of shares in this company it's not a very likely scenario, but if someone did build a stake and look to drive a wedge between the two principle players - then we would all be 'laughing all the way to the bank'.
Even without the above scenario I still think there is plenty of upside, but Amtech is right - until the issue of the possible dilution is resolved there is a level of risk that keeps a lid on the price.
Suppose they could sell them for $400m, pay the debt off and all swim away.
Entirely depends on what someone is willing to pay for them, of course.
So how would increasing the marketability of the asset pay down debt? Very much doubt they’d sell the assets after reevaluating them do you?
As for buying/selling/bluff/bluster/semantics.. yes I’m sure you’ve spent a lifetime wasting peoples time with that … in the meantime, those who acted on my posts will either have a material booked profit or capital gain, those who acted on yours will have nothing. ATB
It will both help with the reported debt ratios, and increase the marketability of the assets, if they want to explore that option. No great controversy there.
Wiggy buying and selling is different to bought and sold!
How does a revaluation of assets help pay down debt Wiggy? Surely that only helps with the debt/asset ratios on the books, unless they start selling there assets to pay down the debt which they won’t and can’t really do.
I agree, nemo. Asset management is another route to reducing the debt, and the current environment will only be beneficial to the valuation of what they have.
Hi Folks,
One thing that might get this stock to have real boosters is the increasing valve and desirability of the assets.
The cost of building new rigs has gone through the roof with all the increases in energy/materials/labour costs, and it takes time to build a new rig. The GMS fleet is relatively young and although there was a hefty write down last year the true valve of the assets in todays open market is almost certainly higher (perhaps significantly higher) than the current value on the books.
Just a thought ......
Actuallu amtech, I informed this board when I was buying and when I was selling. And anyone who followed me would have made 100%+. Of course, anybody who followed you wouldn’t have anything to sell. ATB
I am talking about daily liquidity for someone interested to build a position or to exit without a 10pct bid ask spread on a normal day.Probably traded 1pct over the past two weeks.
Bigging it up while selling out, tut tut tut
Well it’s nearly 1% of the equity. Shifting that amount of any small cap on a usual day would be difficult. But the point is - there has been plenty of liquidity for an average PI to be in and out over and turn a decent profit.
Try shifting 8m shares on a usual day
??? Low trading vol.. ok 4corners. I held over 8m shares at one point, and had little problem shifting it. I suspect the reason to hold is not the immediate rebound in earnings, but - in a world of structurally higher oil/gas prices - the longevity of those recovered earnings . ATB
What I meant was it didn't hold 8 level for more than a day, and now we are below 7.For all practical purposes, I see this as a private equity position given the poor trading volumes - however still disappointing when the outlook is extremely positive for them and crude is back to levels seen in 2015. Yes there will be lag in earnings recovery,but it should come thru.Perhaps the magnitude of the recovery is a question mark
What I meant was it didn't hold 8 level for more than a day, and now we are below 7.For all practical purposes, I see this as a private equity position given the poor trading volumes - however still disappointing when the outlook is extremely positive for them and crude is back to levels seen in 2015. Yes there will be lag in earnings recovery,but it should come thru.Perhaps the magnitude of the recovery is a question mark
4corners - I have to wonder whether you are cut out for this investment malarkey. When you say the shares are “sinking fast” - the context is the shares are up well
over 100% since the cash raise 9/10 months ago, with the retracement looking like a small blip. With respect, something of an overreaction.