RE: HMS Canadian Overseas20 Oct 2021 20:56
Give i think you may have seen this post as you are pals with a certain somebody who i chat to on telegram , this just about sums it up for me very well put
One of the best write-ups I’ve seen, not mine though:
“I don’t want to get into a bun fight but I want to refer to another company that consolidated and is in oil and gas. Surge did an 8 for 1 rollback and then promptly bought two new deals and the market didn’t notice the consolidation because the guy behind it is about growth. He is also someone that people have worked with in the past when things got sticky as he makes fair deals. So people go back to him. So consolidation with growth being shown can work. As does being a president known for making fair deals.
So what is happening here ? As one oil company president here in Calgary put it, you consolidate and then announce a deal so you are putting a dollop of ice cream on a pile of **** to cover the pile of ****. Consolidation is acknowledging what happened in the past was a failure . So you reset and then you have to show the market you are in a new growth pattern so new investors are convinced to come in. But usually you have to blame someone for the mistakes of the past and usually you see a management change on consolidation . So that didn’t happen here . We did the atomic take over and then we consolidated . And we are not releasing news that is convincing the market we are in growth or something is different so we don’t repeat the mismanagement of the past the consolidation was intended to fix . Same guy in charge. News is not convincing the market we have changed.
The fact is we bought atomic with an unconventional lender and we consolidated. News releases to date have not convinced II’s that we have a dollop of ice cream to put on this. If the market believed we have change and growth, our price would reflect it. Because it is still Art in charge his past behaviour is something to consider. And as Another poster here has said a few times, Art has to show the market consecutive quarterly profits and growth. That will get our price up. That will demonstrate change and growth plan.
So when people like me , or others , point out we are missing the proof of growth that will allow our price to change, why is that met with accusations I am shorting or deramping? I don’t trade in the UK. But I am concerned our president has complained of market manipulation as the reason we have no share growth. Maybe dump a few more dollops of ice cream on this pile and we will.
Long post. Point being we didn’t change management on Consolidation. It is appropriate to assess our president because we don’t need to argue about what the market thinks of our consolidation . The market price reflects that opinion. Until the market is convinced we have change and growth it will not reward our stock price . If art is holding back because he is trying to acquire more assets, then his plan is to add more debt or