Even a dead clock is right twice a day.... Schachter is like a dead clock whose hands have not moved in years. However even a dead clock is right twice a day. Joe called it right last year because he made the call right at the time that Bankers had run into tremendous problems with water intrusion and liner failures. This resulted in the company spending a lot of extra money and not getting production increases for a couple of quarters. Plus the seasonality went against the oil and gas sectors and the rest is history. At that time the market was really spooked on Bankers......as a matter of fact so was I.
However, Bankers is not in the same condition it was a year ago. They did a fantastic job addressing their issues. One major difference is that they are getting 10 percentage points more for their crude (80-81%). And their capex for production drilling is only $35 million per quarter and production has been increasing consistently.
I think we can safely say that barring a $40 drop in Brent, we will not see Bankers share price at $1.50 again. At $105 Brent, that would mean that the shares would be trading at 1.3 times 2013 cash flow.