Post by
RichyRich$ on Mar 30, 2019 9:21pm
Bellatrix a Hold on Zacks Updated after the News
Beware of the Paid Bashers that go on message boards after news to try and scare retail investors to sell so they can buy up cheaper. The raw numbers. Take the $8.31 Book Value per share x our 16.5% plus add in the price per share value of $110M less debt = $1.60/share book value for our 16.5% common share. The Canadian energy sector is set for a 5 year bull recovery. We can eventually reach that book value with a sector rebound and with less debt now a respectable 4 to 1 operating cash flow to debt. And they have more wells they can start up to get cash flow up more and use the savings on interest to explore more reserves. The risk discount is now gone... with increasing cash flow and lowered debt (without sacrificing any exploration land) we can creep up to book value per share of $1.60. Right now at $.43 we are .27 Price to book. The safer Oil n gas with 2 to 1 operating cash flow to debt are currently around .55 price to book. We are half that at .27 in line with double 4 to 1 operating cash flow to debt. Other energy sector companies with that ration are similar to the .27 price to book we're now at $.43/share. The market has priced the news fairly at $.43 share price. Only up from here. They have a bunch of wells they shut down to wait for higher NG prices. They can pump out more and get operating cash flow over $100M soon. Remember we were at $63M operating cash flow after the quarter report. Now add the $12M saved in Interest =$75M now. The worry about solving the debt problem gone until 2023. The sector will rebound by then with LNG Canada pipelines completed by then. The fact they didn't have to sell off any valuable exploration land is a positive. Selling off a piece could reduce debt even more.
Comment by
honeystivbators on Mar 31, 2019 10:22am
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