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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

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Message: Resolute funds

Esch said: 'But I'm feeling a little bit weird because Gusella had to sell his shares "in order to meet margin loan calls" '



I'm not surprised by this, in fact, I mentioned this as a possibility last week. I assumed that Gusella might not be the only management figure in this potential predicament. We saw slight possible evidence of this last year or very early this year, I can't remember exactly when, as he sold several thousand at an odd time when the stock price dropped temporarily. At the time, some people suggested that the price was going to drop further and he was selling because he knew inside information. Others pointed out merely that he might have gotten hit with a margin call. The same has obviously happened here, and it is good that a PR was issued because otherwise, people would have said (once they saw insider trading reports) that something was wrong with the company, and that is obviously not the case.

It is unfortunate that Dick got placed into this position, after all of his work in the company. He obviously believes strongly in the company to have extended himself that much. I too had a position which was essentially unchanged since the summer of 2005, and I gambled this fall and margined it up to purchase additional shares before Algar was approved. The margin calls last week took those extra shares away and wiped out a significant chunk of my original holdings, because I wasn't able to cover the margin call quickly enough. It has been extremely frustrating, especially since I warned others to move to cash only hours after the Lehman announcement last month, but I didn't follow my own advice.

Ah well, it's only money. Give it a year or so, and I'll be back to my previous net value.



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