Here's what another company in a position similar to SUF, or the "market doesn't believe you" scenario is doing. Perhaps SUF should consider a similar route if they have nothing to hide. This company, although in the gas and oil business, has a market cap 4.7 times SUF, even though revenues are only double, cashflow is almost the same and profit is less than half.
Both companies have had more than their share of bad luck bringing production on stream, and meeting revenue and cost forecasts of the analysts.
NP says Canadian 88 looks for advice
Canadian 88 Energy Corp EEE
Shares issued 105,065,618 Oct 7 close $3.15
Fri 8 Oct 99 In the News
The National Post reports in its Friday, Oct. 8, edition that Canadian 88
Energy is exploring all avenues to enhance its stock price. The National
Post's Claudia Cattaneo writes that Griffiths McBurney & Partners president
and chief executive officer Tom Budd said yesterday he is providing advice
to the company's founder and CEO, Greg Norval. Mr. Budd says Canadian 88 is
not "actively for sale." He says the main priority is to restore investor
confidence, and one of the ways to do that is to demonstrate to investors
that the cash flow value will match the net asset value. Mr. Budd says Mr.
Norval asked Griffiths for advice on refinancing the company, on capturing
the value of its gas plants that are unrecognized, about joint ventures
with some large international companies, and for an appraisal of the
company. Mr. Budd says Canadian 88 took the step after the stock collapsed
as low as $2.95 on Sept. 1, from a high of $6.45 on May 13. The stock
closed yesterday at $3.15, up a nickel on the Toronto Stock Exchange.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
