Some of you folks are making too much of this share consolidation. The NR today spells it out...." Further, the share consolidation will have no substantive economic effect on shareholders, whose ownership percentage in the Company will remain unchanged." Reverse splits have to be looked at on an individual basis. Unfortunately most times it is done by desperate companies on their last legs but such is not the case with CNE. If anything the company is growing and expanding. They see the 10:1 split as a way to make the stock more attractive to fund managers who would otherwise not be able to access CNE due to their minimum sp mandate. They might as well do it and get it over with. Now that all juniors are down across the board is as good a time as ever.
If the Shona deal works out as well as the Carrao acquisition then we should stand to gain. Monies received from the Shell and Exxon farm in agreements in Carrao acquired lands have pretty much paid for the purchase. We can make all kinds of excuses why the sp is where it is but until you can find a way of fixing what ails the markets the appetite to own stocks for the long run at a premium price will be muted. In the end it's still mostly about what they find in the ground that will determine what people will pay for your shares. Let's hope management's chess game of land accumulation will work out better than expected for us. Cheers to a change in market sentiment for 2013 and a strong next year for CNE.