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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: Dilution a better prospect---

Dilution a better prospect---

posted on May 20, 2009 11:21AM

Just got off of the phone with a family member that had repurchased CLL a couple of weeks ago.---He was upset that CLL would creat more dilution and has decided to move back out of this stock.----I don't know what people want management to do with the present financial situation.----Just think, had management raised 800 million bananas a year ago when the s/p was just over the $5 mark, we would n't have been paying interest, and also, would have been in a better financial position today.----Borrowing money at the rate that they had to take, has been a killer as far as putting the Algar project into reality.---Sure this would have diluted the shares, but what would you rather have, a huge debt, with a shortage of cash, on the near horizon, or another 150 million shares?----The option now is to go the route that they should have taken when the s/p was much higher.----If they were to get another loan from some financial institution again, what would our interest payments amount to?----To just sit and wait and do nothing, would be suicide in the not to distant future, when the cash runs out.----Something had to be done, and I personally believe that they are making the correct choice this time.---Better more shares and an increase in dilution, than having to pay an increase in interest which is already sucking the financial life out of CLL.----Some other institutions must also like the decision, because there's alot of buying going on, as well as the selling.----At least if they get the Algar project going, there's a chance we'll come out of this mess, which was all started by the banking industry.----CHEERS!!!

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