RE: RE: RE: Bankers needs to get as much as they c I think the "NUT" also mentioned he was short Trican. I hope he covered some time ago as the share price is up 50% since the lows. As the old saying goes....."if you listen to Nuttal you'll go nuts".
He recommended buying Trican last spring just before its price collapsed from $17 to $10. A couple of weeks ago when the stock price was around $13 he was short and it is now well over $15 today. I think he has it perfectly backwards. The problem retail investors listen to him and are paying the price.
The Bankers reserves writedown is a real laughable joke. How many companies would like to have ~270 mmbbls of 2P???? Bankers has the same volume of 2P as Baytex for Pete's sake. They have an RLI over 40.
I see the issue with Bankers is the recovery cost. Their well costs are dirt cheap compared to the Horizontal wells being used in the NA and they do not need to frac. However, their IP is pretty low and their initial decline pretty high. Lets hope that their info is correct that they are finding on the earlier wells now that their latter decline is more like 15% as opposed to the 25% they have been telegraphing. If this turns out to be the case, it will be very good for both increase NAV calculations and production growth.
I could see a reserves reduction being an issue if they were trading at a major premium because of their huge reserves and resource base but folks they are trading at one of lowest valuations in the global universe of international E&Ps. Today they are trading at ~2.75 times this years cashflow and as crazy as it is, less then $3 per 2P reserves.
Sometimes I have to sit back and have a real good laugh at the foolishness of the institutional trading market this has become fundamentals mean f... all
The traders have got Bankers' number and play the stock like a fiddle. Look what has happened every time this stock has tested the 200 day EMA.....it gets the sh it kicked out of it back to where it is today.
Unless they provide a strong catalyst, it will likely stay in this range as the boys will not let their play toy break out.