Hi BWZ. I meant to put my last post over here but just woke up so a bit slow. To discuss your concerns and not dismiss them as they are yours and justified,
* Your concern from the report that the GT3000 needs further testing in different scenarios, well maybe it does, but Merriden is/was just one such test scenario, I dont reckon we can get much more out of it. Think of a new hairdresser, a new floor sander or worse a new dentist. Everyone starts somewhere, if you stuff it up or stuff it a little do it cheaper or free. Though the dentist would still charge full cop! Lol! We have already done a medium/small commercial job and Woodside dont pay unless they are happy. They paid. We can do it and do it so the customer pays the full arranged charge. Time to start I reckon and it seems so do managment as the "for hire" sign is definately out.
The crew on the rig and the rig itself wont be quite as sharp in week one as week 52 is all Im saying but now is the time to hire us as we have stated, we are up for hire and I bet the first couple of customers get a discount. We could test the rig for another 6 months is what I mean but until you get out doing different jobs in different conditions you dont iron out all the bugs. There are always bugs, old bugs, new bugs in all machinery, from what I hear it sounds like WSs rigs just have a lot less.
So my read of the part of the Patos report is dear clients, we like the story but its a spec stock so if it breaks dont come crying to us. Standard fare for high risk high reward stock reviews.
* Your next bigger concern the cap raise. As I understand it CKK could not get Patos to knowingly commision a glowing report like this if the guy doing it knew corperate were involved in an upcoming cap raise. Could be wrong but you can see the potential conflict. Some of that cash talk was about the evolution of the company kinda cash not the cash we will need in a coupla months if we get no contract kinda cash. But we do need money so this is how I see it. Will list from best to worse.
* Fat contract announced, some payment up front like a mill, dont need cap raise, hi ho hi ho its off to drill we go.
*Fat contract announced,cap raise announced same time,cash needed for additional expences tide me over kinda cash.We are going drilling, money is raised at a good price as the drill contarct has put a rocket under the SP and lifes sweet.
*Cap Raise annouced, no mention of contract causing power vomiting by many shareholders(refer to the movie "The Exocist" to get the idea lol!).
These are the main three scenarios as I see it the first two being great the last obviously not so good.
This is just my perspective but everyone should DYOR as we all see it differently. Nice to see the earnings potential stuff. These kind of reports dont go unnoticed.
To finish on a curve ball this is something we need to keep in mind. Think of a field with all of gods creatures a little hungry and concentrating their eforts on finding a little food. They do not look up and see the great eagle that circles overhead.
At this price and this point in time what a fantastic time for a take over, not for us but for a predator looking for an absolute cutting edge bargain.
Interesting times, look forward to knowing what I know in a month or so! Hopefully a fat contract, if any cash being raised then on good terms and no predators! Cheers people nice to see all the good posts,
Tretch
CKK Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
