"I ask all of you HEMI defenders, would you rather Hemi be debt free and have 0.5 million in marketable assets -or- have Hemi be 2 Million in debt but with 5 Million in marketable assets?"
Only if Hemi is eligible for TARP funding or the Obama stimulus bail out plan.
"If you understand the financial results of companies including the balance sheet, you will see that debt by itself isn't bad as long as you have more assets to cover the debt. To remain debt free by liquidating assets or selling stock and diluting is a death spiral."
IMO I do not see Hemi's sole business actions and options as liquidating or selling stock. Again there are many O&G companies big and small that would like to be in the position that Hemi is currently in.The only item I agree in this statement is: "if only you understand the financial results of companies", but I would go one step further and respond by saying to you:
If only you understood the financial results and current position of Hemi.
IMO the Silvey Hemi-1 will happen and the funding will be there; nothing wrong with a current positioning in getting this Silvey lease site ready and taking some time to let the energy market, economy and financial market show its hand.
A couple of additional minor items that you left out, Hemi still has it other core SEK leases still on line and producing that does provide revenue, those passive revenue lease agreements in Tarrant County, TX (Barnett) and some very nice prime leases in the Bakken and Haynesville Field.
Yes there are some hard cold financial realities to ponder and IMO based on these realities KA has taken a position that due to these current cold financial realities has Hemi in a decent position relative to the size of Hemi as an O&G company.
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