Bankers may break above week high next week?Brent is up $5 per bbl over the last several days and coincidently Bankers spiked back up of the the high $3.60s earlier in the week. It is quite obvious that Bankers and the Brent are great pals. They seem to stick together like glue!.
Well, if the Iran debacle is pushed out again and Brent stays at this level, we may see Bankers try to break out again. The stock is so darned undervalued that all it needs is high Brent prices as a catalyst. Its 2P NAV is $7.65 now that it has generated FCF in the tune of $32 million YTD. And if Brent hangs around here, the market knows full well that another quarter of $15 million of FCF will be generated along with another record production with an exit production level awfully close to 20,000 bbls per day. My guess is that they will try to accomplish this by putting on a little extra push to get all the wells they have drilled operational ASAP as it would be nice to finish the year with an exit production surpasing the 20,000 bbl level.
All we need is for Bankers' pal Brent to stick around where he is now!!!