Bellatrix Exploration Ltd (Canada) BXEFF

Energy

Bellatrix Exploration Ltd is a Canada-based oil and gas company, engaged in the exploration, acquisition, development, and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan. It primarily focuses on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals in Western Canada. The Notikewin/Falher in Alberta's deep basin boasts abundant, liquids-rich natural gas with compelling economics. The Cardium is a highly e

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Bellatrix Exploration Ltd (Canada) > OK, here is my post from InvVilage, on why this is good news

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Comment by Don2018on Mar 31, 2019 11:03am

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Post# 29560463

RE:OK, here is my post from InvVilage, on why this is good news

Dave4444 wrote:

Dang, I did the Math. and at these price it says BXE is a big buy, here is why:

Assume you have a company with $500 million in debt and a market cap. of $50
million with 100 million shares outstanding at 50 cents a share. The market is
valuing the companies assets at $550 million (debt plus shares).

Now the company makes a deal that reduces debt by $100 million, but causes 100% dilution.

So now the company has $400 million in debt, 200 million shares outstanding and still
has assets worth $550 million. The result being $150 million of the value is now in
the shares and so $150 million divided by 200 million shares gives the stock an expected
price of 75 cents per share. A 50% gain in share value.

Yet in a knee jerk reaction, the market sells the shares down to 40 cents.