Gary Evans said no dilution. He repeated that statement over and over when given the chance. He lied.
I predicted a 15% drop in price from 5.50 on this stock through earnings. We now might see a 25 to 30% drop.
Gary Evans has lost the trust of the street. He has lost the trust of the institutional investors who will sell MHR.
Now that we know Gary Evans is not a man of his word, why should you believe anything the man says? Did you believe him when he said the pipeline deal would raise shareprice by 2.50. It didn't, another lie. Not a single word of anything he said on the call can be believed.
More pain today.
The shares you bought at $6.00 are now worth $4.00. That is what dilution means.
Did you think the institutional buyers, who bought in at 5 to 6 dollars, will just sit idly while the CEO spends every last cent this company has on hair-brained acquisitions like Eagle Operating?
Will they sit idly buy as the CEO breaks his word and reduces the value of their shares?
No, they won't. They will sell.
Can't say that I disagree with you about Evans. He stuck to his guns about no dilution. Guess the circumstances changed that. Short term pain but another chance for me to buy shares. Deceptive... Speaking of deceptive, last time that your sister came over for what I like to call "hide the donkey", I told her that I'd buy her the number 1 at McDonalds as payment but instead I just dropped her off at the bus stop. She'll come back for that number 1 next week.
They were happy to sell.
They just weren't happy that MHR wouldn't pay the drilling costs on even more bad wells in a played out area of North Dakota.
The drilling costs on those wells were a way for Eagle Operating to sucker MHR out of even more money.
The wells produce so little oil, the maintenance costs on the well and infrastructure are higher than the price of the product.>>stkmiser
Great description of the whole of the Bakken a few years ago before horizontal and fraccing,
The wells produce so little oil, the maintenance costs on the well and infrastructure are higher than the price of the product.
It costs MHR money to run those wells. That is why Eagle Operating was only too happy to sell those wells to MHR.
not so if they are selling 40 million shares. Everyone wants a piece prior to the buyout and they don't want to go to the open market. Evans would not dilute his own equity unless he's got the backing from wallstreet to drive the price higher so he can sell. It takes two to tango!