They sold loads of sites and leased them back so they could pay out fat dividends. Part of the reason they're in such a mess.
Buy more if you hate money.
They don't if it happens going into a very grim economic period.
Oversimplification: Chapter 7 is liquidation. Chapter 11 is lenders becoming new shareholders.
Unlikely to make any difference to shareholders here. They're gonna get zilch.
You're missing my point. Spending all your cashflow on capex isn't a problem if it's going to lead to significant growth in reserves & production.
If you're spending all your cashflow on capex and your reserves & production are falling then you have a massive problem. You're not even running to stand still because this is depletion business and eventually you run out of resources.
"300-400m shares at 3p"
That's £9-12M. I think you need to re-do your sums!
The problem is they're exploring for tiny targets. It's to replace existing reserves, not transform the company.
Jurassic World (a terrible film) has also done very well. If they issue loads of shares and get the debt to a non-insane level then I think this could make a very good value investment.
Thinking about it, 3 months is quite a long time. That wasn't a good point to make.
I think it's still too early to say what kind of earnings power CINE may have post-covid. Top Gun has done very well even though it'll be on Paramount+ just 3 months after its theatrical debut. I think the fragmentation of streaming platforms helps cinemas. Of the big three (Netflix, Disney, Apple+), only Disney is big in theatrical releases.
If there's a massive equity issue then the share price won't recover in 50 years.
The capex is the obvious area for issue. They have projected net capex of $5M in 2023 and $1M in 2024 and $0 from then on. That's winding down the company. I think that's probably what they should do unless they can get far higher gas prices in Morocco but I'd be surprised if it's what management want to do given their history and personal incentives.
Auctus are paid research. Worth reading because they probably have insights from managements not available to us but I'd treat all financial projections with extreme caution.
"This is a very important change as Waha had been looking to sell its stake in SDX for a long time, effectively restraining the company from making any bold moves to grow its business."
This only makes sense if SDX were planning to use their shares as currency to make acquisitions. I hope they don't do that.
So what?
I didn't think they would increase their bid but I thought there was a chance due to SDX's Canadian tax losses.
God help shareholders here if SDX's management start talking about their exciting program of 2023 capex.
You should care that management are angry because it means they're unlikely to go along with what Aleph want without a fight.
Before the deal with Tenaz the shares were 8p. Wouldn't shock me if they go back there. Management here have burnt money for years, had no coherent strategy and then tried to ditch on the cheap.
They're probably very angry with Aleph.
I think so. Also reduces the net debt and interest expense of sterling denominated debt when translated into dollars.
If Tenaz don't increase their bid then I think the management will probably be forced out.
I sold a while ago at 10.5p and I don't think I'll take another position unless it crashes.
The headline I chose now looks rather unfortunate given the news of her death.