Dang don't waste your energy trying to argue any kind of positive case here.
While I think we're all too well aware of the significant and ongoing challenges facing MRM and the OSV industry at large - and the SP more than reflects this - unfortunately what used to be quite a healthy forum and two-sided debate descended into an extremely negative, company is completely stuffed, its all over, lynch mob mentality some time ago.
While I share the frustration and disillusionment from the extended industry downturn and service provider carnage we've witnessed and endured - I believe a number of the more simple cheer leaders of death have a profit to be made riding short CFD positions, an axe to grind for past losses, or a watching brief on the company from the sidelines as the company's survival would likely mean a multi-bagger recovery in time.
Personally I believe many know well the considerable intrinsic value of the company's assets SHOULD it be able to survive the downturn, in which case it is quite probable these assets will again one day generate respectable returns (even if not at the highs of the boom years) and the share price recover accordingly. However what none of us know for sure - is how long the oil price downturn will last, how sustainable is the US' shale (& particularly tight oil) production, and hence whether the company will survive that long to enjoy better times again one day.
What I know for sure - is that the supply base sales and resulting financing extension significantly de-risked the company in the short to medium term, and thereby has secured a much better chance for the company to get through. While a pity to let go of these quality assets, the repayment from these proceeds allowed the company's management to secure something far more valuable for shareholders - a very respectable breather from their bankers by way of no more loan repayments until facility expiry in 2019, not to mention a further 6 month term extension to 30 Sep 2019. Technically the loan is then due for repayment in full, but in reality should things be looking even modestly better in terms of OSV market, some form of refinancing will be achievable.
Personally I'm going to take a break from the forum and check back in late August following the company's results and commentary, to see if we can all return to some more considered and meaningful analysis.
MRM Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
