wow.. Was it ever thought these guys would give up control that easily....
6% is a joke... .. strategic review gave us half the battle..now its time to finish the job.. ..
unlock shareholder value and put this company to bed...
I agree for potential investors that the EQU balance sheet looks better today and combine that with the current share price then you have a stable situation. However given the historical track record of the current management I would still be wary of new investments. Personally I would want 7% return before I risked new money with the current management. Going forward what near term events other than speculative ones ie. higher production or gas prices will cause EQU to move higher?.. the annual share holders meeting? Since the current board has spoken I suppose we would have to replace more than just a couple of board members to implement a direction change. Remember last years board meeting? I think everyone that was here last year voted against Klapko .. and yet he survived by promising to provide a strategic review. I just wonder what he will promise in the next 5 months to keep his position. Sort of reminds me of the recent presidential elections.. Obama just laid back with no new proposals after he juiced the system. The unemployment numbers improved just enough to keep him in office. I wonder what Klapko can do to make this rise just enough to placate the share holders. With all of this said I feel I have some blind faith and hope.
If no others take over at a lower price and a proxy fignt does progress we will be most likely be looking at over a year before the air becomes clear. It will be expensive for both the company and suitors. It might be prudent to wait until the next share holders meeting to present new directors... that is if there is truly enough votes.. considering the bath everyone is taking I am not sure how many will be left.
I think EQU is great buy at this price-it doesn't have to go any lower to be a takeover target... .. Looking in the rear view mirror- a proxy fight should have been initiated 6 months or even a year ago. At this time it might be prudent to waite till May. The proxy circular was dated April 3 last year - so 4 months till we could run Adam, Nawar; and others to the board...... Most investors on both message boards seem to indicate by their posts that they consider EQU to be greatly under valued at this price. How much appreciation is possible is another discussion.
Sentiment: Strong Buy
The way this is going the share price will be mid $2 level and perhaps another company or fund may take a significant position. At some point this will become attractive to another entity but at a much lower price and then those with a cost basis above that will become vulnerable. It is possible that someone with capital could take this over at a low valuation. Any thoughts? Many may need to bail out at a loss before the end of the year.
In light of the value destruction that has occurred here since May 18, 2006 when Peter Carpenter became Chairman of the Board and June 27, 2008 when Don Klapko became CEO, it is ironic that they today invoke "fiduciary responsibility to shareholders" when they exercised none related to that value destruction over the forgoing periods.
I would not believe we could hit that low before someone took a controlling interest and present a buyout. If that happens most everyone here would lose. Without detailed facts no one really know much of anything. Again all we can do is idle speculation. I emailed again to suggest a conference call to address inquires.