Interesting to have a look at Magnum Hunter financials etc. They only have ~$30 Million in cash so it doesn't look like a cash offer will be coming anytime soon to AQO holders.
They also have $850Million in debt mainly in notes with a 9.25% interest rate. Pretty amazing debt level of a company valued at only $1.5 Billion. They are also expected to post earnings this year of -65 cents per share. That is they are currently not profitable. I have read quite a bit about US shale and a number of companies gorging on debt and running massive losses. I've only had a brief look at Magnum Hunter and don't know the story but they appear to fit in this category.
The chart also looks a bit (triple) toppy. Would have been good to be offered shares when they were $3.50 but they are up 150% in the last 12 months.
Purely from an all around financial/growth/geographic perspective Drillsearch shares look more valuable. If AQO holders are just going to sell immediately in either case I guess it doesn't matter too much. Magnum Hunter aren't exactly a blue-chip though.
AQO Price at posting:
32.5¢ Sentiment: None Disclosure: Not Held
DLS Price at posting:
$1.46 Sentiment: Buy Disclosure: Held
