Re: a fellow long ; Last debt issue is a poison pill

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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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hubisan

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Re: a fellow long ; Last debt issue is a poison pill

in response to

Re: A fellow long

RDOTT

posted on Jun 14, 2009 05:40AM

I agree with RDOTT

The latest addition of debt does have the effect of a poison pill to deterr takeovers. The 200 MUS$debt costs about 27 MUS$ per year of interest. Nobody wants that.

Connacher cannot sit on this cash. The only possible next move is to restart algar and duplicate Pod1 facility. Only the current management can do this including probably by hiring again the "Diggers" team.

We are binded to current management for execution of Alar and full of poisonpill debt with near junk bond notation. CLL is ours and for good and for some time now with all its risks. Nobody will take it over.

One can even think that this is a major motivation for management decisions. They bet the farm on a risky gamble about oil price in 12 months from now so that nobody can interfere. Notakeover, no management revocation.

Hubisan

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