Al R / Share Consolidation
Al, I agree with you wholeheartedly - but it might not apply in this case.
I don't know if this has been mentioned before, but I suspect Benz is consolidating shares to meet the minimum dollar/per share amount required for listing as a regular NASDAQ company. Last I remember, $3.00/share was the minimum.
I also remember seeing someone comment that this was not a Canadian connected company. That's not accurate. They may have drilling activity solely in the U.S., but company management is basically Canadian people. As I have expressed before, key officers don't always have their shareholders in mind. They have a history of growing a company and reaping the benefits in the form of options, which they are pretty free to declare each and every year. Meanwhile, shareholders end up holding shares that appreciate very little on a year to year basis.
In these trying times for oil and gas producers, it would be wise to go with proven producers with a successful record regarding increases in reserves, production and low operating costs. In addition, debt is an important consideration. There are just too many companies in this category to consider - over that of those in a situation as Benz. The company may prove to be a winner, but there is a great extent of speculation behind one's investment into the company.
Regarding listing in the USA. I am not too sure this is a positive situation. I'm directing the comment to the small and unproven type company. I can't think of a single company who delisted on a Canadian Exchange, in order to be listed in the U.S., where share prices benefited. There was Arakis Energy, who experienced a great rush in share appreciation - but ended up in the trash can in time. A lot of people got hurt there. In addition, Arakis was an internatioanal junior which gave the company leverage for speculation. Can you think of one company who made this move and are considered successful today.
I can't.
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