RE:RE:RE:Why today?It;s at 17:30 of the full Episode on BNN.
He was very definite: 'I wouldn''t own this stock. I think it's a classic value trap'. According to Eric, PXT has struggled to garner attraction with investors for too many years now. Columbian exposure is more precarious now with political risk from on again off again pipeline disruption, He acknowledges they are going by the Nutall playbook of maximizing cash generation and aggressive buyback of shares, but either because the new CEO hasn't gotten traction with the street or ongoing challenges or perception about inventory depth etc it's just not catching it with investors. He doesn't want to be stuck in a value trap where oil re-rates from $70 to $100 and his performance lags. Wants to be in names where people are going to care at $100 oil when they don't care now. He says PXT is trading at 2.2X at $100 oil and he can buy Canadian mid caps at 1.6 at $100 oil which have a chance of being on peoples radar screen when oil re-rates. Does not see an investment thesis.
This is a little inconsistent with his often stated observation that if a company can buy back all its shares the last one will be worth a lot. I doubt there are many companies in his universe that have such a history of reducing shares outstanding through buybacks. At some point that gets attention and a re-rate. Also interesting that he used the word 'perception' about inventory depth - he hasn't hedged his wording talking about inventory shortage in other companies. Pxt seems to have a pretty active drilling program near-term.