GREY:WFREF - Post by User
Post by
d_trumpon Nov 06, 2014 6:45pm
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Post# 23104394
bought more today at 2.82
bought more today at 2.82Their debt to cash flow ratio is an overhang, however their Oct presentation projects they will exit 2014 at 1.75 which would be a nice improvement (currently greater than 2x). Annualized CFPS is roughly $2 - if you trim this by 20% to account for lower prices you're at $1.60. So under $3, we are trading at less than 2x's cash flow.
So I think if they are successful in lowering the debt to cashflow to 1.75 and if oil prices stabilize around $80 or higher, the dividend is secure and a fairly signficant bounce is in order.