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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (52102)	12/1/2018 5:48:25 AM
From: Goose94	Read Replies (1) \| Respond to of 202374

Crescent Point Energy (CPG-T) the heaviest volume in its history. It had no news to explain this activity. Presumably at least some of the selling pressure came from institutional investors in response to the stock's recent deletion from the MSCI Canada Index, which took effect at today's close. All in all, it was a bad end to a nasty week for Crescent Point. Not only has the company been unable to halt the slide in its share price -- which was as high as $4.52 in intraday trading on Tuesday but is now below $4 -- but an activist investor is taking shots at it, again. Shareholders will recall that last April, Cation Capital, an Alberta-based private investment firm led by Sandy Edmonstone (previously the deputy head of oil and gas with the Macquarie Group), vocally criticized the "abject failure of [Crescent Point's] current leadership" and started a board battle. The stock was then trading at around $9, down from a mid-2014 high of nearly $49. Crescent Point won the board battle, but even so, its president and chief executive officer at the time, Scott Saxberg, decided to step down in late May. He was replaced by former engineering vice-president Craig Bryksa. In September, Mr. Bryksa announced a "transition plan with measurable deliverables" (such as asset sales) to improve Crescent Point's situation over the next 12 to 24 months. Cation has now popped up again to broadcast its unhappiness with this plan. It published a fresh complaint letter on Monday, lambasting Crescent Point's "clearly ineffective half measures" and "leisurely" 12- to 24-month time frame for improvements. What the company really needs, insisted Cation, is to "install new independent leadership to initiate [a] formal value maximization process." Presumably it knows just the people for the job. No names were named, but Mr. Edmonstone warned in the letter that if Crescent Point does not take what he sees as necessary steps on its own, "... we [at Cation] reserve every right to bring about change for the benefit of all shareholders." Crescent Point has not made any response to the letter. If it does, it will likely reuse much of what it said last spring, when it painted Cation's plans as vague and its principals as grasping opportunists. (The fact that Mr. Edmonstone seemingly formed Cation barely a week before starting last spring's proxy contest got much play.) At the moment, though, Crescent Point is busy holding a series a meetings with selected institutional investors. Cation is not among them.