O/T CpsOmis; re: <Slider...how with a straight face can you say...>
< "Slider...how with a straight face can you say dilution of a stock is a good thing, rather than conventional financing?">
CpsOmis; per your earlier statement here:
<<Hi Sir GeicheMan:
First....I was wrong about Slider. You were right. He is a self possessed manipulator. I apologize for beating on you a while back.>>
For you & Geiche - who both are totally & completely lost here... I really, quite honestly do find it beneath me to even respond to your continual banal drivel... But; in a moment of mercy; so that perhaps you will learn something - I will. But; I still point to you & Geiche and all of Geiche's incoherent babbling about market manipulations; as proof that neither of you should be trading online, or in individual stocks. Simply should not be - and unquestionably so. Go to a financial planner, a full service broker or just buy some mutual funds - for your own sake... Geiche is now virtually incoherent - CpsOmis; do you want to end up the same way (VBG)? Just say no to online trading & get out while you can...
***... In response to your question/comments:
First; how can an Equity offering (versus conv financing) be a positive ? - and "how can I say that with a straight face" ?
Simple. They just did a combination of both. As you must not understand; they just received a very aggressive conventional financing package. Their equity offering is in conjunction with that package. The combination of conventional financing "AND" an equity offering is what they wanted and what they got...
MLRC's market cap is approx $39.6 Million here. They just got the new credit line of $65.5 Million which paid off their prior bank line with Bank One in full, for $28.8 Million. The remaining line will be disbursed as MLRC drills and builds pipeline infrastructure.They are restricted in how they can use those funds; they must be used for the San Juan Basin development. They can't buy back stock, or do acquisitions with it...
MLRC could not get a credit line for all desired funds. Given that Acquilla just advanced basically 1.66 times their market cap in their new line - which was nearly twice their old line; I'd say that was quite a vote of confidence. How many companies have just received financing equal to 1.66 x their market cap ? MLRC is issuing the equity for 2 reasons. First; Institutions can not acquire positions in MLRC very readily given their daily trading volume & liquidity. This offering will give institutions the ability to do so. The equity offering will be absorbed rather easilly by Institutions. That is a "known" before the offering was announced. The funds will be used for general corporate purposes - with greater financial flexibility that the credit line will allow - as they paid the prior Bank One line in full and will disburse the funds for ongoing Cap Ex spending only. MLRC can use the equity offering at their will, for general corporate purposes including additional drilling, pipeline construction and acquisitions.
For you & Geiche; everything is some big conspiracy, or manipulative hype; this company was profiled in Barrons over a year ago. This is not a new company, or story. The financing has been the hurdle since last year. It was a $12 stock last year and has had a $16 price target presently - prior to this financing being announced. I have owned it, off & on and followed it for over 18 mos. This recent price; made it a tremendous opportunity given the new financing. This was an "anomaly" to be bought headlong.
This company is going to spend literally; near 2 times their market cap on drilling & production enhancement in the coming year.
That is phenomenal leverage to production, cash flow & earnings growth - literally phenomenal; nearly unprecedented ! That is like Apache spending $9 Billion Dollars ! - on a proportional basis.
"HYPE" ?- no, not hardly. This is a well known story, has been for some time; and sadly - you wouldn't know an opportunity if it came up and bit you in the ass... If you think its hype; simply short these stocks... put your money where your mouth is; I am...
MLRC up 15% today ! - that's a 30% one day gain on my margin purchase (VBG). All the way to the bank; because I can...
As per my policy; I would never comment on my "livetime" profit taking - trading; but, use your imagination - ;) ... and you can bank on the fact that I will be holding some MLRC long, long, term along with some MEXP MHR RRC CRK etc. - I'll pick my spots to take profits, re-enter, and trade it again & again... just like MEXP, RRC et al... I would think it would be a bit boring and totally impractical; and would obviously kind of defeat my own trading positions in low volume stocks; to post each time I sell/take profits, or trade in & out of positions. All of these stocks are solid winners for anyone who buys & holds; and doesn't whine about every daily, or weekly move if they are unable to make their own timely trading decisions. Some people are "natural born traders" - some are not, never will be...
Here's the "CONVENTIONAL FINANCING" release:
Mallon Finalizes $65.5 Million Debt Financings and Launches Aggressive San Juan Basin Gas Drilling Program
DENVER, Sept. 9 /PRNewswire/ -- Mallon Resources Corporation (Nasdaq: MLRC - news) today announced the completion of a $60 million debt financing facility with Aquila Energy Capital Corporation that will allow Mallon to begin an aggressive development drilling program on its San Juan Basin natural gas properties in northwestern New Mexico. The initial facility is $45.7 million.
At closing of the financing, Aquila advanced $28 million to retire Mallon's previous revolving credit facility with Bank One, Texas, N.A. Additional funds will be advanced as Mallon's development drilling program proceeds. The interest rate on the four year loan is prime plus 2%. As part of the transaction, Mallon issued to Aquila 420,000 shares of Mallon common stock.
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We've just had the largest one week point drop in DOW history. The entire Oilpatch is down from 30-50% allmost accross the board. Nothing has changed with MEXP, RRC, CRK, MHR, or MLRC here. They are down no more on average than SII, RIG, HAL etc. Everyone of these stocks has had spikes, or substantial trading/profit taking opportunities to those who are able to "trade." All remain; excellent long term holds for those who "can't." I would strongly expect that these 5 as a basket will outperform the OSX over the next 18 mos. from here.
Once again' CpsOmis, Geiche et al: if they are "hype" stocks - short them; simply put your money where your mouth is - for once; and please... quit babbling and ankle biting unless you have something to say that is rational, coherent, or makes sense...
"Voltaire" ? - you two are a match made in electronic heaven... You ought to exchange Private E mails and get together for a mid morning Vodka & Valium party sometime; as you both seem to have sooo much in common per your postings... (VBG).
PS, CpsOmis; - Geiche is a woman; at least she dresses like one ... but, being from 'Frisco - ya never know... ROFLMAO :) |
