Connacher's share price must stay higher for a prolonged period

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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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Road_Warrior

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Connacher's share price must stay higher for a prolonged period

posted on Jan 12, 2012 08:43AM

Connacher's share price must stay higher for a prolonged period of time for shareholders to receive a higher value for their shares if and when the company is sold. It is my understanding that when a company is sold the value of the common shares is based on the average share price over the previous two months (please correct me if I am wrong here someone!). Then there is usually a premium attached to the share price which could be 25% + . So if the company was sold today, the average share price for Connacher's common shares would not be very high as the common share price has not been in the 0.90 cent range for a long enough period of time for that to be the average share price IMHO.

There will be a lot of speculation today on the boards and over the next few days as to whether Connacher's Board of Directors refused to sign off on Dick Gusella's proposed growth plan for Connacher which was recently published, or whether the so called new "activist" majority owner orchestrated this move by exerting pressure on the Board of Directors, or whether a number of the largest institutional sharehholders got together and forced Dick Gusella to step down (a coup). Does anyone have any predictions now on what happens to the share price in the market place?