A great little arbitrage opportunity, courtesy of Above Average Odds. Read the write-up, well written and presented. Should be a great return in a very short period.
A great little arbitrage opportunity, courtesy of Above Average Odds. Read the write-up, well written and presented. Should be a great return in a very short period.
3 responses to “New Buy: Cano Petroleum (CFW)”
How you feeling about this now that the Reseca deal looks shaky? I assume company can just sell some assets to deal with its liquidity issues?
This hasn’t turned out as I expected. Although the deal not going through is not the end of it. CFW still have a shot at working it out w/ Reseca. Also, the value of the CFW assets are substantially more than the current market value of CFW. So I think the company could sell its assets and shareholders get most of the value back. The concern I have is with management and whether they can move beyond Reseca and liquidate. I think there is enough value in CFW’s assets.
Yes, agree. The company has no cash and $65m of short-term debt that they now need to deal with. Hopefully management has a plan B in place other than Reseca.
Stock now at 68 cents!