Tamarack Valley Energy Ltd T.TVE

Large secondary offering at 2.53

[pennydredful]

by selling   shareholders   by    National/rbc/Peters.    Buy  all  you want.

[riski]

It's not an offering.  It's a block trade and is already fully subscribed.  Nice deal if you can get any of it. 

[highalpha1]

I'm not sure what the original poster was pointing to, but in the press release of TVE's last acquistion, they put in some restrictions in terms of how and when shareholders from the now acquired Anegada Oil who were awarded TVE shares as part of the acquistion can sell their TVE stock. These restrictions were included so as to prevent former Anegada Oil shareholders to crater TVE stock by

[pierrelebel]

From the original announcement: "At closing, Tamarack will enter into lock-up agreements with each of the directors, officers and insiders of Anegada who, following completion of the Acquisition, will collectively hold or exercise control over approximately 18% of the issued and outstanding Tamarack Shares. Pursuant to the lock-up agreements, each such shareholder will agree not to sell or

[Mtklip]

can someone explain what a block trade is?

[riski]

A block trade is just a regular trade, but involving a large number of shares, often from one institution/fund to another, but sometimes from a fund to multiple buyers.  The number of shares is usually in the millions - above the normal volume on any given day.   They are not usually available to retail investors, but occasionally if a very large block is being moved, part of it

[Mtklip]

thank you for the explanation. Could you tell me who's selling here? Is it part of the anegada acquisition deal?

[riski]

Anegada shares are locked up for another three months minimum and six months for the other half.   The information I have is that the big sellers are the funds at Lex capital and Longbow capital. I wouldn't read much into the sale.  Funds sell positions for a lot of reasons.  It seems like a crazy thing to do right now with TVE making so much money, an enviable balance

[riski]

I should add that I wouldn't buy WCP right now.  I think it's fully valued.  It will trickle up slowly, but there are other names that will do much better at $70+ oil, especially the more oil-weighted.  Companies like TVE, for example.  

[Mtklip]

I don't know about WCP being fully valued, they have a dividend and negative CO2 emissions, those are big selling points. Also, the share price is well below 2018 level and the company is bigger and better.

[riski]

All true, but it's relative.  At these oil prices, the cash flow per share is much, much higher for other companies.  It was a good one to ride up from the two's when the recovery was still uncertain and other companies were at risk of bankruptcy, but the quick, easy money in WCP has been made.  It doesn't look terribly exciting from here.  

[Mtklip]

ok, I think we agree, what's your upside target for TVE for 2021? Which small caps do you think are the best bets at this point. I have a position in YGR, hoping it'll play catch-up.

[riski]

I stay away from the microcaps. I like leveraged oil names.  BTE, MEG, CVE are all making obscene amounts of cash at these prices, but their stock prices are still a bargain.  That said, BTE and MEG have a lot of leverage and if oil drops below $60, the stock price will fall.  Leverage cuts both ways, but the upside torque if these prices sustain or go higher is substantial. TVE

[Mtklip]

TVE and CVE are my biggest positions. Oil prices seem to be tracking the Goldman Sachs price targets present well so I'm expecting a strong summer. Also, even if the oil prices dip to low $60s, profits will be stronger next year as the hedges come off. I'm very long for the next two years minimum.

[riski]

Yes, long is wise at this point.  There is so much momentum, it would take a lot of bad news to derail this rally.  This is not the time to trade in and out for small profits.  This has a been a great run, but it's far from over.  

[mlcb2525]

Well those are 2 funds I will never invest in...................

[BigJake]

It's been 30 plus years since I have been in the patch, can anyone give a quick explanation of water flooding Thanks

[Mtklip]

I'm pretty sure it refers to injection of water into the ground to bring petroleum up to surface.