RE: RE: RE: Interesting approachGreat post dmacd. It helps put the recent events in perspective
If I could add some thoughts this;
The share prices is being impacted by the bigger picture – recent commodity slide has everyone jittery, trading volumes are down (go away in May thing) and this is not the strong season for oil stocks.
The market has a lot of information to digest – the latest WFE events and the macro picture. So it may take a while to unwind this story.
I read over my Scotia Capital research and they had a much higher CFPS estimated for the quarter so it looks like they had a miss. Is the market reacting to that? I am guessing some of the production came on line later in the quarter – so Q2 should be a catalyst for sp increase. SM is now on research restriction so I’m not getting their take on the recent events right now.
As for this being a take-out story – I am reminded of the picture of the small fish being eaten by a larger fish and a larger fish behind it and so on. At 10k boe/d it now catches the interest of a company the size of Cresent Point (over used example I know) – who is try to get its output to 100k which makes it attractive to the mega oilers. So in my opinion bundling these two companies together does this make them a more attractive target to companies with deep pockets.
I also like this story due to WFE’s clean balance sheet, increasingly improving operational efficiencies, and intriguing Viking exposure - so without the take a good story. I bought more yesterday – including adding in my TFSA. Lets see if next week brings better buying opps.