What does this mean to the bottom line? Well, let's say you had money in two stocks and one of them was more than carrying its weight, the other one dead in the water. Now, if you got out of the one that was dead in the water and put it in XYZW, which then moved upward, you would be re-allocating your investment to a more profitable area.
LPS represented 30% of the O/S shares and delivered nothing. Since I am pro-Envirotec, I see the picture as thus:
If they can find another Class V well, then buy it with some/all of those shares; if they can't, stand pat and keep the O/S down. Whether it's Bernie buying MCI or Warren buying Gen Re, if the acquisition is worth it from a Rate of Return basis, buy it with stock, otherwise, sit tight and wait.
Just as long as there's no more oil/gas involvement, please, please, please. Much more lucrative to dump know quantities in a known hole than it is to search for elusive stuff and then have to use resources to bring it up out of a hole...especially at current prices for both oil and gas.
TG |
