RE: RE: RE: New 52 week high"I would love to see 10, 11 bucks, even analyists have moved up the watermark to over 9 bucks, .... are we getting a bit over optimistic?"
Good question Gauwd. Depends on who you are. If you value a stock and its potential based on where its price is, or more importantly was, then it would seem this run would end soon. If you value it based on its assets and potential, I would argue that it has a long way to go.
I think you have to discount the market tank in late 2008, 2009 when you're evaluating where BNK is, and where it can go. Go back to the summer of 2008. BNK traded at over $4 (I know, cause thats when I bought my first 1000 shares, lol). Too lazy to go look at what the high was, but I think mid $4s. At the time, BNK had limited production, not much cash, a new management team, no line of credit, and far half of the 2P they have now.
Since then they have hugely ramped their 2P, have a $100M LOC they don't use, have doubled production, have a solid plan to double it again in less 12 months, have made some significant land acqs, are far more well known, have stated publically that they intend to prove 1B bbls of recoverable oil, and the world is coming out of a global recession. After all that, the stock is trading at less than twice what it was in summer of 2008. Even when you consider the offering they did, it is less than 2.5 times what is was. That's a good run, but to me if it was worth anywhere near $4 in summer of 2008, its worth far more than $10 now.