RE:RE:RBC Capital Reaffirms Their Hold Rating on NuVista Energy
Been reading and watching you talk down Nuvista for weeks honeypot and while you're right there is a financial situation at hand to deal with as many are aware of. The bank RBL rerate in the coming month(s) should improve the lending base if not at least marginally as commodities have recovered and (gas) especially has improved since the earlier lending basis period. IF management stick to their promises of paying down the $55-60MM in debt by 2020E then I don't see any reason why the valuation would dip the sp back into the 50' s let alone in a take over offer. Keith buying into the company shows the value he still believes the company holds. Similar to Ron's large purchase in March. While I do think a take over is likely at some point, I simply don't think it'll be much below, but actually higher than the current sp. You're clearly a cheerleader for Pou which is great but if you knew how the company operates in the patch it would definitely skew your view. Paramount has strength in financial backing and the Riddell name but as operators they are horrible. I've looked back at your posts and you bashed every peer and most are doing better pou. Paramount might make a lowball offer but a white knight to rescue Nuvista isn't quite required yet. They'll have to convince the remaining 83% ownership that it makes sense, which it clearly doesn't give the positive potential in '21. GLTA