While it is always frightening to see the price decline, when it does so on low volume, at least one can conclude there isn't a mad rush to the door for some unknown reason. The flipside, of course, is that there doesn't seem to be enough demand to absorb a bit of selling; which is unfortunate. As the company grows, I hope more steady buying demand develops.
Other than the fact that it has not yet happened, it seems to me that the final stages of the acquisition should still happen. And, even if they do not, the company has a lot more going for it than that piece. The future continues to look positive.
JMHO. Good luck, longs.
Perhaps. The pay does seem excessive for the performance; certainly if based on share price. They did state, though, that everything they need to do has been done and everything the seller needs to do has been done. The delay is supposedly with the other partners who must approve the transaction 100% according to UK law. Unfortunately, the only reason for them to approve is when they have learned all they can about the company and when they decide that further delay only hurts them in terms of reputation, retaliatory delays on their transactions, etc. That the seller has continued to extend the deadline is a good sign that they want the sale to go through. It seems with their size; however, the others would be inclined to approve the deal to avoid further issues with them. Maybe they have not flexed their muscles?
Management expressed their frustration with the UK process of transferring title to leases but also indicated they would eventually be transferred. There has been no news and no information, other than the passage of time that gives me any concern about the deal still closing. On the other hand, the company is making progress on other projects. So, to me, things are positive.
The other oil companies that are causing the delay due so to flex their muscles and to learn as much as they can about competitors, who have to disclose everything to gain the needed approvals in the UK. The only thing that will make them sign off on the deal is when they realize there is nothing more to gain and only something to lose by causing more delay. I suspect that day will come soon.
The delay is like a bad movie. At one point, one wonders if it will ever end. However, about the time that I accept that the remainder of my life will be spent trapped in the bad movie, it ends; and life goes on. What appears never ending always ends.
Good luck, longs.