Shareholder Meeting - a cutnpaste from Group Board
As a relatively new investor, my quick recap of the key takeaway points from GASFRAC meeting Wednesday: 1. Without safety, this company doesn't exist. Some shareholders told the board to "just get over it" regarding the fire (three minor injuries) in January 2011, and get to selling the product. Board responded, "No, we won't get over it." Safety first. 2. The product is game changing, and nobody else can do it. That was a unanimous conclusion at the meeting, and even the rabble rousers (including one who owns two wells on his own) were totally on board. Reasons behind original investment thesis remain intact. 3. Management, to me, seemed competent with a good game plan. No so for two critics, who questioned vetting of new Prez Zeke, and whether at $4 PPS, Zeke and gang should resign. The Chairman of the Board, Gerald Roe, responded that the company knew it had to change management in 2011, hence the hiring of Zeke six months ago. Management needs time to implement game plan and make results consistent. 4. One supportive shareholder correctly pointed out that big-picture trends are hurting GSFVF stock price. He cited CalFrac, with reported good earnings and paid a dividend, only to see its PPS go from $30 to $24. Another suggested that if GSFVF hits on just a few more cylinders, we're looking at $16 or $18. 5. The company chief financial officer said the balance sheet is healthy and he's confident that they have enough money through 2012. 6. Question: With price at $4, why wouldn't Exxon or Chevron come in and say "we'll give you $6 and all your patents and operations are ours"? Roe said he's not heard a peep of that talk, and if he did, the board would go through a normal buyout analysis, with a third party advising to as if the price was good.