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Engineering, procurement, construction & management of crude oil refineries.

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Message: ONE MORE THING!

Trading and rumor

posted on Jun 09, 2008 09:14PM

Vancouver stocks are traditionally up on rumor and down on fact. Also ,it takes a couple of days for the information to get out especially when there aren't any IR people on the deal. And besides, Foley said years ago that he was going to build a real company, not just a VSE play.

The Vancouver boys always said that Foley couldn't get out of his own way. He accomplished the goal of getting the contract. Now, he has to get the stock up, or the cost of the equity kicker that will likely be a part of the debt financing will be extremely expensive to us, the shareholders. And it's unlikely that someone will give $7B to a paper company without receiving an equity kicker. Foley will have to get the stock up to the $5 level, and keep it there, to attract the kind of money we want him to attract. The upward stock movement will show his Vancouver detractors that they were wrong.

Murray Pezim struck gold at the end. Will Foley strike oil and turn it into gold for his shareholders? He has to think seriously about doing that. Sooner rather than later.

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