The problem with OSH is that it is asset rich and cashflow poor and I have been a LT holder because of the excellent asset base. The last 24 months has altered the landscape, it is getting harder to obtain finance and another equity raise will be dilutive, as they issue paper at a discount to the value of the assets. I will reluctantly accept the STO offer because they have the cashflow to develop the assets and I think that the oil price will remain higher than most people think. The transition to a carbonless world will not happen as quickly and the lack of capital put to work to replemish declining production will create a imbalance between supply and demand.
OSH Price at posting:
$4.20 Sentiment: Hold Disclosure: Held
