The thought I had is that a CR will typically only discount 15-20% if it's aggressive. So I would expect that much in dilution.
However, if Messina is buying a major asset either a new field or the other half of the Wizard field rights then this will need to be added to the revenue generating about to happen. My estimates lead me to think that WBE may rerate based on changing fundamentals.
And certainly the buying activity we have seen last week was quite telling that some players have been taking positions before a restating event. The amount of newsflow was also quite evident. In my experience this sort of activity does not happen very often.
Just my opinion. Let's see how high it goes and what the nature of the acquisition is.
WBE Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
