I bought more today..... I may regret it but I could not resist buying more in the $2.60's. The company is trading at 2.45 times 2013 estimated cash flow. You would have to go to Yemen, Iraq, Argentina or mali to find lower multiples than this.
I have said it before but worth repeating. Bankers is seen as having mediocre reserves economics and I think both the macro and company specific(uncertaintly of what will be reported and the bank discussions) factors are conspiring against Bankers right now. There are few stocks that are as tightly leveraged to Brent at Bankers. Unfortunately particularly on the way down!
If Brent holds around $110 average this year and they mid the mid point of production guidance, they will be generating $1.10 or so in cash flow which is about $278 million of cash flow which more than pays for all of their capex with $30 million to spare.
Reserves size as I mentioned in a previous post are huge for the size of the company but the market perhaps does not see them as economic as some peers so they discount them.
I sure hope they do not shoot themselves (and us) in the foot next week.