Post by
Hendrick3 on Aug 07, 2021 8:26am
Upside Is phenomenal
One never knows the reason that someone sells a bundle of stock at a huge discount to projected value, but they must be desperate for cash or had a margin call. Next Wednesday the much anticipated 2q results come out and the corresponding increased projections for cash flow, free cash flow and production. At the old projections, using $60 crude, FCF was 25 cents per share. We now anticipate higher production from the world class wells, prices are close to $70 than the old $60 estimate so debt is coming off quickly. The average target price is over double by the analysts who cover this stock and pretty solidly rated a buy. I feel bad for whoever sold at such a discount. Their recent well performance may be the best in the Cardium. The good news is that those discounted shares have found a home with me and I am grateful to have them so cheap.
Comment by
schoolinmoe42 on Aug 07, 2021 11:06am
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Comment by
schoolinmoe42 on Aug 07, 2021 11:07am
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Comment by
Hendrick3 on Aug 07, 2021 2:41pm
Easy to confuse the two. They are my two major holdings. Similar under valuations. I think in the next 6 months both will be 70-100% higher if crude can hold above $70.