Greengas

I have not been able to find any substantial reason as to why Connacher's stock is as low as it is. I suspect that a major player is trying to acquire a substantial interest in the company at extremely low valuations so that even when the poison pen provision is triggered, they can still buy the company at a fraction of its real value. I posted previously that I thought the current asset value of the company is about $7.67 per share. One poster on stockhouse posted that an investment firm could reach an agreement with the exchange and the order to buy or sell would not post until the sale was complete in order not to interfere with normal trading. If this is true a large order could be placed to buy at a range of say $3.00 - $3.10 and it would not post until it filled. In the meantime the entity could sell on the open market through another exchange timely large amounts to keep the market from going higher until such time as their large order is filled. When they hit 20% of the total shares outstanding they would trigger the poison pen. I suspect though they will stop short of the trigger point and then just make an offer for the rest of the shares at say $4.50. If the board of directors triggered the poison pen provision when the suitor makes their offer, it would only take the price up to $6.75 for the remaining shares. This is still a steeply discounted number with regards to Connacher's real value.

I suspect many investors are ready to sell after this current shock and would be more than willing to let go of their shares as it approaches $4.50 much less $6.75.

Martin