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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Post by aaaaaarghon Nov 17, 2011 6:44pm
386 Views
Post# 19246951

the big picture

the big picture

I briefly held wfe earlier this year at around $6 and got cold feet and sold at the same price.  I do believe that it has a good management team and alot of upside (which is why I bought it in the first place.)  Believe me, I am not trying to bash the stock but just give you that "other perspective" as to why I haven't jumped back in yet.

1- MACRO ECONOMICS.   It is not going to matter if wfe's oil starts coming out as gold if Europe continues to go downhill.   It also is pretty much not going to matter much what stock you hold.   If the bond yields continue to go up, recession hits, and/ or Greece, Spain, Ireland, Portugal, or God forbid Italy defaults, than welcome to the nightmare.

2- Sentiment- As above, everything else is what matters right now.   As HUGE amounts of cash sit on the sidelines, you can be fairly assured that any cash actually buying anything, will be purchasing large cap stocks. 

3- Westfire.   As I said in the beginning, I do like the company itself and continue to monitor it just in case I can get a low ball offer in.  Like the management, like the fact that they will grow from cash flow starting next year, like the properties and I actually like the merger.   The weaker side is that they only have the last two quarters showing positive EPS (although with decent oil prices, that should now continue, and grow).  But as it sits RIGHT NOW, they have a huge earnings multiple (which again shows that we believe in their future growth and profits).  There last production update had some issues.   This happens, but it is still a negative.

I believe that WFE will definitely do well in the long run, (3-5 yrs), but to be honest, I still wait on the sidelines for all the whole markets to go to heck, when I anticipate I will be able to pick this up in the $3 range.   I hope I am wrong for all of your sakes but nobody is buying anything right now and although it has little to do with westfire itself, it is still a reality.

Good luck to all in whatever you hold.    Disclosure...I am 100% cash right now.

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