GREY:PMGLF - Post by User
Comment by
maxleverageon Dec 30, 2012 6:08pm
334 Views
Post# 20782336
RE: RE: RE: bottom out?
RE: RE: RE: bottom out? The $250 M credit is not needed for operations. They have $200 M left of the convertible bond which has August 2013 put option so likely the credit facility will be used to pay off the convertible.
The stock is cheap by all valuation metrics (and it has $300 M of pipeline assets which the market does not appear to be valuing). Everyone is waiting for some evidence that they can get back their mojo and find some meaningful oil to stop the production decline and add to reserves. It will happen and then the stock wil move up very quickly. I don't think there is a lot of downside risk for those who hold a $8. You pick up a good dividend yield while you wait.