RE:RE:RE:RE:RE:RE:Valuing an oil company is not easyPIPE was a great investment for Strathcona, as they only paid about 2/3rds of what we are worth, and at the same time over-valued their own assets. But with the 15% drop in PIPE's share price, the valuation os Strathcona has also dropped, and is getting more reasonable. If oil prices hold, I only see a further potential drop of 10% or so.
The problem is, there isn't much short-term upside, like there was with PIPE on its own. Strathcona's growth is going to be slow and tedious. Long term it should do fine, but the longer the timeline, the more risks enter the picture. Just as an example, if the Ukraine conflict gets solved, and it will get solved, oil prices could plummet and take everyone's share prices with it. I am just not that excited about holding that risk. JMO