GREY:LSTMF - Post by User
Post by
galaxyron Dec 04, 2010 2:13pm
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Post# 17801192
cashflow/share buy back/ insider trading
cashflow/share buy back/ insider tradingHI, does anyone have an idea how much Petrobakken has left in cashflow room. During the 3rd quarter report they indicated they had roughly $300 Million available in credit. Using some crude estimate one can assume they used another $10-12 Million to purchase back shares from the end of the 3rd quarter to the reporting of 3rd quarter results on Nov 8th.
They have since cut back their daily buy back to around 5000 shares a day from the normal 13000-20000 shares a day.
It is encouraging that insiders are purchasing shares at these low levels, but I don't see large share purchases. I see an insider purchasing only 1000 shares here and there, not tens of thousands.
I want to jump back into Petrobakken, but I have concern that because of cashflow problems they reduced the share buy back and if they eliminate that due to lack of cash that the next step would be to cut or eliminate the dividend.
Cutting the dividend would cause this stock to slide even further as some are only holding it for this purpose.
Lastly with the taxation year ending, will investors sell to realize capital losses.
I know oil is on the upswing, but during the last 3 quarters Petrobakken has continued on the decline and that the barrels per day have decreased during each quarter to where we sit at 40,000 bpd. They owe alot of money on the line of credit, end of year tax selling may occur.
Should I jump in or wait?