RE:RE:RE:RE:RE:To all Nervous Nellies and Worry WartsTopdown,
It is a good discussion today with some posts. I have two things to say about stock splits, not only specific to Bayex.
Splits, foward or reverse, cost money. I don't think Baytex will do one, though I could be wrong. It would be better to do it now or in the future, if it must happen, than during the pandemic.
If a reverse split were to take place, I would prefer it happen after the buybacks take place, and they become pointless, because the stock has reached fair value or higher. The large float makes it easier to suppress the share price, and a greater share quantity to be disposed of by Baytex. Not likely to happen anyway.
You are right about the bashers. I noticed it, and consider it a tell. They know from reading charts like mine, that a strong move above $8.50 on good news, is likely the end game for them. They will not go away, though the opportunity to accumulate shares, at massively undervalued prices, will have come and gone. I think we could see a mini squeeze once, or twice, when the stock gets close to $8.50.
Meanwhile the float is still large, and sector rotations have not happened yet, which means institutional ownership is still low, and will increase in the future. The tech names in particular, will be sold off, and the proceeds are likely to find their way into oil and gas. I look forward to the Canadian equivalent of, and US SEC Form 13s that should come out soon. Based on stock behavior alone, it will be interesting to see positions inceased, and or decreased.
Longs are winning the waiting game. If it goes lower, longs win. If it stays the same, or moves higher, longs win. Longer term, it will go higher, as the share count goes lower, and fundamentals are proven to be better, with each quarterly release.
I'll say it again, what a great board this is. I would like to participate more. If it were possible.
I would really enjoy being on a E/P board of directors during these times!
Longs,
Time is your friend. Be right and sit tight, or use the volitility, to trade around a core position, and accumulate more shares.