RE:RE:RE:RE:Oil and gas up over 10%, PIPE down 20%What Seppelt posted on August 1st:
My worst trades are selling too soon. I often sell about 20% or more on a given rally hoping to buy back on a retreat. It worked lately but in the past I lost some good names that never looked back. I think $80 WTI will hold. Not planning to sell even a small portion of this stock, not until Q2 release.
What Pablo posted on August 2nd:
I decide to use MEG as my baseline to value these producers as its 100% oil. 6.7B market cap, $1.3B debt, 105,000 boepd = $76,000 per flowing boepd.
The combined entity will have 185,000 boepd, 70% oil. @$76,000, $9.8B. Is 55,000 boepd of natural gas and NGLs worth $1.7B (2.9B-9.8B+8.8B)? Probably not. More like $1B maybe right now. That's one thing. The real problem is that using that metric, Pipestone is being under valued.
It is what it is. I sold my PIPE and bought ATH - undervalued on the above metric, Plenty of Duvernay locations. Not taxable for years. Not paying full royalty for years. Debt free. YMMV.
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That said, this share price seems way too low to me.