too cheap to last, page-14

Why isn't ROC cheap? Well firstly, the share price has done nothing but fall over the past 18 months. It falls while other oil stocks exponentially rise. Secondly, it pays no dividend. This is a feature a good stock should have, as it gives some comfort to investors should things turn sour. Thirdly, it's liquid assets and access to investment grade borrowing is almost running on empty. Nevermind dividends, it can't get a decent project off the ground. Fourthly, can it manage to raise sufficient amounts of capital without causing significant dilution to existing capital? Lastly, oil is falling, and will continue to do so while the world economies slow. But that's ok, China will underpin oil demand? Wrong.....!!

If I wanted an oil stock at cheap levels, keep away from penny dreadfuls......unless they're priced lower than their worth.