Rebels
I've posted before that CLL should wait to expand till SP goes up and then offer shares to further expand..there's no reason CLL can't go back to $4 a share with these oil prices and projected production.
I think so too.
Also proceeding with Algar on lower labour cost was a good move but what brought us in this situation was the fact they curtailed POD 1.I remember they were in the news papers as the only company who ever tried that out.At that moment of the crisis it was clear they were so in panic due to the undercapitalisation that they act the wrong way.They just had to do nothing because their timing was wrong.Like you compared "Kind of like don't buy a house at the top of the bubble." is wrong well acting at the low of the curve of oil price was bad .
From that point all turned negative because their damage to the output with lower cash income +ramp up was a disaster .Then of course the sp tanked rapidly .So by then negotiating again for new capital at such a low sp caused them to dillute double amount.If the sp was at 3 the amount of shares should be less for same capital.
IMO if they just did nothing and waited the crisis out because oil climbed rapidly above 40 the sp today could be around 3 and not at 1.12 as of now.
I just don't trust these guys anymore when it comes to decissions to take on capex.Like Scott wrote too they are only interested to own control about 100% as long as possible and rather on the back of shareholders then on theirs because they cover them by issueing cheap options.
Before the crisis when pod 1 was ramping up they stated "no more dillution".Fact has proven they have a split tongue.
I still hold on in the company because this sp is to low and 2 is possible next year .But after we have seen what management is capable to do specially on raising capital we must be on alert when a possible timing of another capital round is iminent.
