way too cheapThis stock is trading way too cheap. Oil and gas specialist on marketcall said - "it's so cheap" but it dropped further after her comments. Both oil and gas prices were up today and this stock still went down. I just don't understand the market sometimes.
I have been told that the riddels were some of the best oil and gas management in the business but the stock price does not seem to substantiate that.
I noted that our production in the last quarter was basically the same as last year and the company made more revenue because of higher prices but we still lost money (alot of money) because the company hedged their production at lower than market prices and then they rewarded themselves with "stock-based compensation". Who gets a bonus for money losing decisions.
Wow.
Management undersold their product. I wasn't even able to find the hedge price anywhere but I think at todays market price the hedges are back in the money. If anyone knows more about the hedge contracts please post it.
Paramount, Trilogy and MGM are all failing investments for all but the riddel family.
I listened to the latest presentation and Paramount definately has alot of potential but the market seems unwilling to pay much for the potential. This is more of an asset play and if you take the sum of the parts this company is grossly undervalued but it's managements job to bring out the value so they are failing us. Eventually the value has to come to the surface but it is painful to see my holdings eroded further and further by the day even on a day where our commodities were on the rise.
Message to management: Please do something positive.
OeanRanger