I guess as a non-sophisticate who's moved up the stakes a bit most CR's apart from via rights rankles with me.
Would take an extremely astute move that only cash would facilitate to compensate us for the dilution - a power station albeit merituious simply will not.
If it was AOE you'd no sooner see the power station sorted and it would be off balance sheet in some manner, and debt or third party funded. Now if that is yet going to happen (maybe after commissioning?) what is so much cash required for? Something is brewing - this company is led as much by financial wizardry as geology if you look at director/management bio's.
Either way this costs me gas that I would not have lost for a measly 1.25 if they'd done a rights issue. Insto's don't want to meet the market, but the directors want insto's on board, which they wont get via a rights issue - why do they want insto's? Power station, insto's, dilution all contra indicators for sprucing up for a takeover, these guys want this as a long haul vehicle, perhaps after arrow get's swallowed.
Sorry if I am contradicting myself, I am thinking aloud, trying to make sense of it.
Ah Stocktoe, no chance the power station cashflow will cover more than a small fraction of future drilling costs.
EL
BOW Price at posting:
$1.38 Sentiment: LT Buy Disclosure: Held
