RE:Why isn’t CJ tracking the price of oil?????The last time WTI was $87, CJ had just increased its divy to 6 cents, there was an expectation that CJ would continue to reduce its debt and that oil might continue at $87 or move higher. The divy stayed and oil dropped and debt was added. It will take a sustained WTI price over $85 to show results and pay off past costs all well reducing reserves. The bump in share price will not be as much as the bump in oil until CJ can demonstrate that it is generating FCF that is using to either reduce debt, buy back shares or increase reserves and that has to be shown in an QER. The market knows the value of the company and adjusts accordingly until CJ can prove it is worth more on its balance sheet.
If WTI gets to $90 I think the market will assume CJ is making bank and it will pop. I think CJ is already making bank over $80 and will demostrate it with the Q3 ER and it will pop. Its just a waiting game now which is what 9/10/11 percent yields are for.
GLTY and all
Central1951 wrote: Last time WTI was above $87 CJ was $8.84. WTI is again above $87 and CJ is only $7.38. What gives?
All opinions welcome.