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Bullboard - Stock Discussion Forum Bellatrix Exploration Ltd (Canada) BXEFF

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... see more

GREY:BXEFF - Post Discussion

Bellatrix Exploration Ltd (Canada) > OK, here is my post from InvVilage, on why this is good news
View:
Post by Dave4444 on Mar 29, 2019 1:29pm

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

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.
Comment by Dave4444 on Mar 29, 2019 1:39pm
Think of it this way, at yesterdays market cap. they would have had to sell at least 2X the outstanding shares to pay off $100 million of debt.  Instead they managed to pay off $100 million of debt by issuing only 1X the outstanding shares. Essentially the debt holders bought BXE shares for at least $1.00 per share.  
Comment by honeystivbators on Mar 29, 2019 1:49pm
This post has been removed in accordance with Community Policy
Comment by greenpasture1 on Mar 29, 2019 2:05pm
This post has been removed in accordance with Community Policy
Comment by Don2018 on Mar 29, 2019 3:47pm
Hahaha, are you ever stupid !!!!!! You have no idea how these transactions work, do ya? What an idiot!
Comment by Don2018 on Apr 01, 2019 1:49pm
My vote for most idiotic post of the year. And the fool actually went out and bought BXE on Friday even as people were telling him he was posting nonsense. I wonder how much that clown lost on that dummy trade?
Comment by backforty on Mar 29, 2019 1:40pm
I'm too lazy right now to verify some of the numbers but at a high level, I agree with it.  Your analysis is interesting - let's see what next week brings.  
Comment by greenpasture1 on Mar 29, 2019 2:20pm
This post has been removed in accordance with Community Policy
Comment by ariesleaf on Mar 29, 2019 2:33pm
HOW is that good for shareholder's now.? DILUTION pushes up the ACB.
Comment by Just1Question on Mar 29, 2019 4:02pm
Seems like they issued shares for a higher price than market: Re Senior Unsecured Notes:   41.26M Shares for $47.8M so $1.15 per share Re Second Lien Notes (2021) 26.29M Shares for $62.2M so $2.36 per share Not sure if this is right but that is what it looks like to me.
Comment by Holdernko123 on Mar 29, 2019 4:05pm
totally wrong!!!
Comment by Don2018 on Mar 31, 2019 11:03am
Hey douchebag, when are you going to apologise for misleading people (and being a moron)?
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