Big Banc Split Corp T.BNK

BRENT $35 big support at $20

[nexthink]

I look at the chart and it seems brent has big support at $20.

According to some oil analysts, next year brent should trade between $20-$30 in order to reduce this massive oil oversupply.

I see a big support for BNK at $50 cents.

But I am afraid that the albs force BNK to keep production to that level which will cause a massive dilution for BNK at very low share price. TD is speaking about $50MM fundraising next year. At $50 cents it' s 100 millions shares dilution to keep production flat next year.

[leonace23]

you are wrong on all counts

[braincloud]

We should get some support at 2008 lows. BNK at 50 cents? Hmm, I guess anything is possible. That's a BIG IF though, I'm not sure that an issue is in the offing any time soon. I think they have enough options to negotiate on their lines of credit and cash. That said, if oil does drop to $20 then its another ball game.

[braincloud]

If it gets to 0.50 I will go ALL IN. Tomorrow's conference should give us some sense for how they feel things are going.

[nexthink]

You are not afraid BNK goes bankrupt should oil stay at $20-$30 for few years ? You are not afraid of dilution with fundraising, or decline of production....? Under $30 oil BNK is definately not profitable without hedge. So they will increase their debt (which is now around $120 millions but growing). I think its pretty risky to go all in on BNK especially you dont know how long oil can stay low

[braincloud]

Am I afraid? Sure. Dilution? Maybe. Under $30 for oil? No Increased debt? No. If you think it's speculative, you are right. but lets talk to why. It's speculative if you think oil stays down at unprofitable levels for a protracted period of time. I'd guess they cut another rig to save on cash. Does oil flow stop? No. They see production declines yes, but buffered by EOS. If you think