Mr P, As I don't currently own KAR, it is easy for me to have a positive view. I see opportunity in a (potentially) mispriced asset, whereas others are understandably extremely frustrated with current share price weakness.
My guess is that the refinancing is to facilitate financing another acquisition without the need for another large dilutive capital raise. Points to another acquisition sooner rather than later: a good thing IMO.
Ignoring the merits of Who Dat for the minute - hindsight is a wonderful thing - although my initial thought is that Who Dat still OK, not exceptional (never was), but still OK.
Management was tasked with finding a suitable asset (in the GOM?) to diversify the company's production profile. Presumably, Who Dat was their best choice. Presumably the BOD set acceptable investment return parameters for an acquisition. The BOD makes the decision to buy (with no financial incentive?), not management. In other words, management can't say, hey let's buy this heap of crap solely because we can close this deal quickly so that we get this year's hefty bonus!
KAR Price at posting:
$1.87 Sentiment: Hold Disclosure: Not Held
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