Highest close in a while, page-89

Black,

It was suggested to me a while back,( as you have stated) that the shorts are not shorts. the stock is being borrowed, but somehow listed as a short. Now i do not know if that can happen, but its one of the few things that would make sense. There is a pool of 50mill with more than half borrowed. You would have to think its the same shares. What the game is. I don't know, but you would think there is only a couple of options.

Regarding the % sale, whilst I said this morning that I think the deal is done, you would have to have faith in Bobs ability or stubbornness to get the best deal. They did well in the current market with their backs to the wall with Poseidon. No reason to not think the same again. I do not agree that the buyback will equal % sale.
For a start, we do not know what the % will be, but I bet its more than ten%. Twenty is my bet. $ 200-300 mill the number. Keeps Kar in control, reduces their capex upon development and matches in with some expected development numbers and cash/capex requirements for same..

Also you say that the buyback can only be of benefit if we find an enormous asset. Well that's what Bob said in his announcement- if you want to believe that's his primary reason for Buyback.

"The buyback will reduce the number of shares on issue and increase the exposure for all shareholders to the upcoming appraisal of the Kangaroo oil discovery and the high impact, oil focussed 18 month exploration drilling program.”

To me, Kar are backing their belief in a good result here and are killing a few birds with one stone.
1. Sets a floor for shorters or whoever.
2. Protects the price thru to drill.
3. Eventually provides value to long suffering SH thru reduced SOI
4. Gets rid of some cash in case there is T/O issues.
5. If the buyback is short and sweet, then perhaps changes the numbers and protects against T/O

Then again, it might be none of those things and they will cancel buyback if SP simply rises to ( their) acceptable level.