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Gold/Mining/Energy : THE OIL SANDS

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From: james flannigan	2/2/2011 11:50:03 AM
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RBC SAY OPTI GOING TO ZERO!!!.If so this will dry up all funding for oil sand jrs IMHO The Globe and Mail Go to the Globe and Mail homepage Jump to main navigation Jump to main content Search: News Quote Web Businesses People News SearchNews Search Stock QuotesQuote Search The WebSearch by GoogleSearch People at canada411.caPeople by Canada411.caSearch Businesses at yellowpages.caBusiness by Yellowpages.ca Select City Select City Calgary Halifax Montreal Toronto Vancouver More cities Help Login RegisterHome News Commentary Business Investing Sports Life Arts Technology Drive Site map My Watchlist Markets Funds & ETFs Investment Ideas Personal Finance Investor Education Expert's Podium Dan Richards Thane Stenner John Reese George Athanassakos Portfolio Strategy Let's Talk Investing Number Cruncher Streetwise Blog Streetwise Videos Features Taking Stock Market Lab Vox Schizas' Mailbag Me and My Money Investor Roundtable Dividends Globe InvestorStreetwise VideosStock, fund or company search Stock, fund or company Subscribe to RSS Entry archive: February 2011 Home » Investing » Investment Ideas » Streetwise Blog » Streetwise Videos Opti 'going to zero,' RBC says BOYD ERMAN Globe and Mail Update Posted on Wednesday, February 2, 2011 10:44AM EST 3 comments Email Print/License Decrease text size Increase text size OPTI Canada's hiring of Lazard Frères & Co. Is a sign that the oil sands developer is "preparing for either a debt restructuring or a bankruptcy proceeding" according to RBC Dominion Securities. The firm said in a note to clients that OPTI stock is "going to zero" as a restructuring "could occur by June 2011 but with a high degree of probability by year-end 2011." Video Streetwise - Auto sales hit the gas Video Streetwise - Crisis in Egypt Video Streetwise - Who's to blame for the financial crisis? The firm argues there's not much room for escape for shareholders of Opti (OPC-T0.38-0.07-15.56%) . "OPTI's balance sheet is grossly over leveraged," and the company's operations at its Long Lake oil sands project " wll not improve quickly enough to afford OPTI positive cash flow before the company exhausts its liquidity." The company could try to raise more debt but RBC "believes that it would be irresponsible for the company to seek additional debt financing, as it does not believe the time afforded by such borrowings would change the likely eventual outcome of bankruptcy or restructuring." What about takeover? Sorry, no, RBC says, arguing "it is highly improbable that a corporate transaction would emerge at this stage."

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