Post by
Valueinvestor9 on Aug 21, 2015 9:37am
Kicking Horse could trade down to $1.67
The Markets are red all around the world due to fear of global growth.
The world markets is in a downtrend is on, and that is going to put further pressure Kicking Horse. The next push down on the markets is the stress on financial institutions worldwide. There is some fear that we may be heading into another round of financial crisis. I do not mean to be alarming, but companies with debt are going to come under serious pressure. Look at the general sector and the down turn that has happen. We are in a challenged time. If a company is well financed, they should be able to fulfill on their business plan. In simple English, the world is not doing well. Be cautious.
I further stress that the latest quarter was a miss, based on the addition of the debt, the minimal growth in production. I would be interested in having the company provide a complete summary of the type curves for their wells. The production the company is achieving vs the cost incurred is not adding up.
I continue to advise investors to do their own due diligence. Please be careful, it is not looking good out there. Look at Baytex today. The stock is collapsing. Companies with debt that is not sustainable are collapsing. Baytex is separate because it pays a dividend. The market is not liking companies with high debt. Kicking Horse has High Debt. The management team or should I say Ray, wants to drill, but he may not be able to afford to keep drilling, and thus the market will further punish the stock.
The markets worldwide are down. Please be aware that Banks are coming under some pressure.