General OutlookI choose CJ board to write this post, as this is the sh*t show board of characters...anyway I have been asked by a few posters for target prices for different stocks or stock picks. Here's the deal.
Not sure I will directly answer that question but I know I will indirectly answer that later.
I think the easy gains have been made already in this relief rally for many junior and intermediate oil and gas companies...fundamentals and outlook will play more of a role in future gains then value for a lot of companies soon. Research and brains will matter soon in order to make a return and not lose. In fact I expect certain companies that have rallied to be worth less in June ieven if oil stays in the 60-65 band.
Many companies are just getting back to the late Jan or earlyFeb 2020 or range levels before the Covid f*ck bath, so whole market has went up...hasnt taken much skill...most are just getting to their Covid pre levels. I think to move past the precovid levels for the company that you are in...going to need further upcoming news.
I also held CJ and YGR through Covid so back when I came back from sabbatical I kinda had to average down in CJ and YGR. I couldnt buy any other stock even if I wanted too back then. Now that I have recovered and more...I have options now. Could sell everything in YGR or CJ but I still think meat on the bone and I am know these two companies well. Takes me awhile to get a comfort level in something new. No desire to get out of YGR or CJ but I am considering adding more capital into my account.
Before CJ releases any type of new good news...and of oil remains in this range...I think CJ will trade at 2.20-2.40. Before Covid we kinda were in this range. May get a murray edwards 10 cent premium...so 2.40-2.50. In short term without good news I don't see how we break this unless inflation expectations get so crazy and people are moving money into hard assets and companies will barrels...but I don't invest expecting such lucky scenarios.
At 2.40-2.50 I will likely start % selling little bit...just enough shares that I am not so leveraged on the credit. Don't mind running 100% margined and going for a homerun gain but I don't want any bank credit,
I do think CJ will hit 6 dollars sometime in 2022 but another post.
YGR is 1.40-1.50 but with a good news press release 1.60-1.75. Don't think YGR can break 1.40-1.50 without some type of news...but I suspect they will have one within a month.
And the company I think is most awful is Athabasca Oil.
Stock shouldn't be higher then 45-50 cents but you such good promotion from Eric Nuttal.
But eventually thier operational stuff will catch up...look at that sustaining capex...it's too high in my view for lhow ong their wells last. Those wells don't last 15-25 years like others.
ATH investors..ask yourself why the 450M debt is taking so long to refinance in 60 plus oil?
They likely need oil to be 70-80 environment to thrive and do well.
Look at the SOR ratios? I think lots of people buy ATH quite blindly. Just trusting the analysts.
Better options if oil was too go that high. If oil was trading between 70-80 for a sustained period of time..CJ would be min 3.50-4.50 and YGR would be 3.50-4.50. If oil every got stupid and was 70-80...YGR would pass CJ just on it's ability to drill it faster.