I think the current cash flow is a very legitimate concern. Cash is hard to come by in this market and we need to make sure that we arnt just wasting it. The fact that they mentioned the date of the last cap raising in the investor presentation can mean one of two things, a) that they are trying to show the market that they are prudent managers of their cash (hopefully the case) or b) trying to soften us up for a raising at a very average price which could very well put further downward pressure on the SP as it is. All in all it has the potential to be another good year for the ELK as long as we see things happening at a reasonable pace without so many of the delays of last year, which demand for the sort of services (and rigs) they are after falling hopefully things move alot quicker
ELK Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
