Probably to te ones that carry Kar shares the answer is not so...

Probably to te ones that carry Kar shares the answer is not so relevant,but should be...

The question is... How much for the current price we can blame the situation (like all shares dropping from STO to WPL and so on) and how much can we blame the management and their poor practices?

I would like offer an answer..


The current drop is NOT fault of management...as well is not caused by shorters....as well is not caused by the strong decline in oil price...
In a combination of all 3.

We are going to production... That means ask more money by more shares or by loan in bank.. The end result is the same... dilution of value... If we go to this and the selling price will be with cheap profit or not profit at all... of course the only ones interested in that are this sanguines that drink in a daily base capital to their own wages and comfort.
To the rest of other shareholders left just the pain to "contribute"

Probably the board and his "masterchief" in command the omnipotent Mr Hosking senior,must be aware that if he try to raise capital he will repeat the last time but now in much worst percentage... He didn't raised what we need and now probably even 50% of the needs.

Remain the loan in bank and to come to that the reserves must be commercial viable .

The Kar experience is a disastreous from the begin to the end... Any mistake demands the person re-read his own actions to avoid the repetition.

Since the begin the clan was there and that was a strong sign that most of us don't gave too much attention. But that show the CEO was not targeting the BEST PROFESSUONALS in the market, but professional enough to fill the positions and much advantage to himself

The current announcement,before made by the CEO and now made by the Managing Director is another clear sign and slash in the faces of all members..saying.... you ask for proper governance and better distribution of power...
I did... but I'm going ahead being the king of this company... The company is "mine"..

A small Hitler in the oil space.. Proud of his achievements repeating to himself how many wells was successful and how the company from 0.20 came to 1.76 !!!
And to the ones that didn't enjoyed that ride the answer is...

Terrible ,worst natural ressources cycle of the century..

Karoon could do better >

No, at that stage even a super heroe cannot fight against evident power of market selling oil and gas... But we could in past and we didn't.

That is the reason why we begin the "sell market" when the share was 2.90 when we should begin the drp with the share at 5.50.

Chances to grow are poor but still exist... A huge partner to this production phase giving to Kar some longevity with this cash until 2018 (I honestly doubt they can keep a minimum of 100M without burn 300 in 3 years).
Or a takeover that we waited all way down from 7 and each dollar less we believed in some magic conclusion that never came...
Come now ?
Uhmmm... with that oil price,with all economy slowly down, with so much oil available...
Maybe a take over at 1.80 ( not laughing and not playing...)
maybe this is not a bad deal considering the continuity of that situation will bring the share even down.
We can see this share going to 1.50 and panic selling trowing to 0.99 until recover back to 1.40

Why ?

Because the cash will be spend in a "non reason endeavour". They should review strategically the ways under such circumstances... But they will not... They decided go to production.. like..

I need a dream..even if is not good at least I don't need to wake up...

Pathetic end of game and now shareholders really need a miracle to see this share goes up consistent and strongly.

The shorters always are in advance of shareholders... always was like that,,,

For that reason I decided when I made my review to create some rules like
a) share with short selling I'm not in and not interest
b) search everyday short selling position begin to grow. Just sell independent of the moment..

Like a flag... Not perfect not always correct but for sure more than 51% time correct.

Next AGM Im not sure if new group will be form to try dispute the board.
But what I know is... with pleasure I'll buy 4,000 shares from Black just to have a pleasure to look at the eyes of Scott and James and Bob and say, yes...get out and go find a job !!

Cato