Good Morning.........Yawn.....................................................................
From Stockman Forum.
Canada:
Subject: WRN
Fr: Bill Wrixon - Former IR
Hi LeRoy,
I received your email asking for some info on WRN. Actually, I seem to
be getting a lot of calls at my Paxton office asking the same thing as
of late. During the month of August, it was decided that the investor
relations for WRN should be consolidated with its other operations in
Texas. Makes sense; saves the company money and the IR rep will have
their finger on the pulse of the Company. However, the program has been
slow in coming. Investors phone me frustrated with the lack of corporate
communication.
I think that the reason for the delay boils down to value. IR is
expensive, labour intensive and often ineffective. All public companies
(OTC aside) have disclosure requirements which are designed to provide
the investor with the fundamental information required to make an
investment decision (i.e. auditted annuals, quarterlies and news
releases that address material change). WRN adheres to reporting
requirements ....Groan says you. I know but sometimes a company has to
make a choice: do we spend money on getting our story out there or do we
put the funds towards building a sustainable company?...Both would be
ideal but answer me this: what benefits the legitimate long-term
investor more; an asset that creates steady cash flow and increases EPS
or an intangible IR program.
In the end it is the health of the Company and shareholder value that
matters; the market will respond to success (eventually).
I am not denying that part of shareholder value is created through
timely communication and in this respect, WRN is currently behind the
eight ball. However, if you refer to the press release that addresses
the Indonesian rig orders you must admit that until the rigs are
delivered there ain't much more to say i.e. "we have put the second tire
on the third rig and boy does it look good." What the investor has to
look at is the time it takes to build the rigs, the money the company
will make from the sale and the potential of future sales. If the
company turns the rigs over quickly, makes a good buck in the process
and secures another large order then things are looking up.
I am no longer working for WRN, however I will say this: I am a
shareholder and it was a pleasure working for Mark Roberts. I have
faith in what WRN is trying to acheive and I know that everyone involved
is committed to the success of the Company. In terms of the recent stock
volatility, your guess is as good as mine.
Best Regards,
BW
reply: BW, thank you for your frank input. Now why doesn't Mark just
send us a note say twice a month on things happening. YOu know 1000's and
1000's of people will read it. It accomplishes two things. It keeps
many of his investors updated (since many of them read our note) and it
is cheap. All it would take Mark would be to sit down, write an update
paragraph and forward it to me. And I don't get paid from him, wouldn't
accept anything from him anyway, and he hits two birds with one stone.
Pass it on and convince him it is a good idea. Thanks......LS
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