Fundamental Financial Analysis, page-35

RT, you have certainly decided to jump into a cauldron! To address the points:

1. Sale of assets - IMO forced by being breach of covenants and facility maturing with no hope of rolling over.

2. Drilling rig company (MATH Energy Drilling LLC) is I believe the family company of Dr. Mark Hart. With the downturn, rigs have been laid idle and prices slashed by drilling and well services companies. Did AKK get a good deal? Did MED get a better deal? Who knows. Not me but disclosure of contract term/rate, inclusions & exclusions would be useful. Competitive bid - I don't know.

3. New Chairman was former CEO. New CEO was former COO (and son I think) of former Chairman. Does look like any new mgmt to me

4. You'll get used to announcements like that

5. Don't make AKK SP predictions -its a trading stock so anything can happen and price could easily move 33% in either direction (just an $0.002 move) by a trader wanting to move the stock.


The question being wrestled with here is does AKK have a chance to make a company out of what's left and their championed discovery in the Pierre Shale given the business fundamentals that apply to them.

Good luck