Classic. I'm not angry. I am just querying the logic and whether the decisions are in the best interests of shareholders in the circumstances the business currently faces.
When conditions change you need to adapt. Noone saw the dramatic oil price fall coming but it happened so here we are. No good pretending things can keep going as they were pre crash. All the big oil companies have already tightened their belts, cut costs and put off workers. Not sure why these guys think they are any different.
If you run low on funds - It seems prudent to cut costs first before you head into loan shark territory.
Every $1 saved through cost reduction will save the shareholder $3-$5. The key thing to do to me seems to be to minimise the Magna transactions to the absolute barest of minimums.
SWE Price at posting:
9.2¢ Sentiment: None Disclosure: Held
