Yes I know KAR is frustrating. Yes I know its not fun to watch...

Yes I know KAR is frustrating.  Yes I know its not fun to watch your invested money get smashed to pieces.  But consider two indisputable  facts:

1.  KAR are a oil and gas explorer.  And guess what...they found oil and gas!  This is not easy to do, if it was, then everyone would do it.  Just ask the bozos at Santos.

2.  KAR produce ZERO barrels of oil and ZERO gas.  Therefore the recent oil price crash has ZERO impact to their earnings because their earnings were ZERO to begin with.  You want to know what the other side of the equation looks like then go see the clowns at Origin Energy.

KAR found gas and they sold it for $600M instant cash just before the price plunge.  Seriously, what more do you want from this master stroke?  For those that say it was just luck....who cares!  If you score a hole in one then you write a 1 on your score card, not a justification on how you did it.

KAR also found oil, and are now firming up the economics of this discovery at a time when cost of doing so is at a lowest point in years.  What more do you want from this?

KAR sold a share in their oil find, and then bought it back at a fraction of the price.  $15M is a pittance in this industry.  If instead they put out an announcement that they searched for and discovered oil for a capital expenditure of just $15M i think you would be applauding.  So what's the problem here?  If you say the find is not economic to begin with then why are you here?  The reality is you don't know that.  The reality is that's why the share price is $1.30 now as opposed to something much higher...or lower.  Its called speculation, its called risk versus reward.

You don't buy KAR to make your 7% per annum.  You buy it because one day it will be something like $8 a share.  That day will come when the oil price cycle turns again, which is what KAR is positioning its self for and I think they have pretty clear in that regard.  If you cant wait for that day then go invest somewhere else.  If you don't believe that oil price is cyclic then go invest somewhere else.

KAR are cashed up and are keeping their money close to their chest, at a time when the world markets could pretty much tank at any time, sounds prudent enough to me.  Maybe the chief complaint is just that KAR management gets paid handsomely for seemingly doing nothing.  Well I say again, not that I think this is justification, go check out the jokers at STO and ORG if you want to see what true overpaid incompetence looks like.