re: Official Erin Energy (ERN) thread

$400K daily is approximate cost of rig.. Divided by 16K BOD. On OE yet. They need to make $28 per barrel.

Certainly isn't helping Erin Energy, but it is helpful to me in acquiring more of a still risky, but undervalued company given it's potential and current cash flow.

It's below $5. No one is paying loose enough attention to realize the above.

"there are no $100 bills lying on the street" But only if those smarter than I are paying attention. And they aren't here. They weren't in the case of LTCM either. Another bailout for a bunch of guys all smarter than us. Interestingly enough, their play on Royal Dutch would have eventually paid, if they didn't tkae banker's advice and overleverage resulting in their need to liquidate at a large loss. The same situation appears here. Loosely in the valualtion to risk pricing model, and certainly in the dual listing.

But what would I know? I'm not a banker (haven't had to declare bankrutcy either. Or get a taxpayer funded bailout for stupidity). I'm just some guy from Iowa.


As another aside, if anyone thinks the bankers didn't have warning after 1998, or whenever the LTCM debacle occurred about what could, and was almost guarantees to happen in 2008, they'd be brainwashed by their banker employer, or are completely uninformed, and choose to get their information force fed to them, rather than think for themselves.