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Bridge Resources Corp V.BUK



TSXV:BUK - Post by User

Comment by Sparkletoothon Aug 13, 2008 2:34pm
407 Views
Post# 15381345

RE: Concern...

RE: Concern...The entire market is sceptical of high impact drill plays right now.  If this was August 1980, BUK would be trading well north of $10, but at the moment, with an non-promotional management here, the spec premium has shrunk to zero.  Busts like ENG and UNX don't help.  Check out CHQ today.  They announced a second very impressive natural gas discovery off Trinidad and the stock hardly even bounced in percentage terms (although it's true everybody expected good news).  As was posted here yesterday, BUK probably didn't find any hydrocarbons in the shallow targets so the stock has sold off with the rest of the oil plays.  Given the weak market, I suppose the downside here is about 80 cents on a complete miss, but  with $20 million per month in cash flow from Durango starting 7 weeks from now and another high impact drill (Aspen) to follow, 80 cents would be almost a no-brainer buy. 
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