GREY:BXEFF - Post by User
Post by
Steelhead15on Nov 15, 2013 10:03am
396 Views
Post# 21909270
double bottom W and future
double bottom W and futureSo far the W is continuing to take shape. The W is one of the simplest signs of a potential bottom IMO. I'd like to see us hold this price or move very little from it.
More fundamental, I would think one or more bigger O&G companies are analyzing BXE due to all of the Cardium holdings after Angle. There are negatives like debt. The big positive is all of these assets at this reduced price.
Its a coincidence I thought the next big move for BXE would be more drill sites and then it happened so soon. I'd say a dividend is next, but some debt needs to be eliminated before they start a pay out like that. However, they could announce a projected start date for a dividend plan. It could be a year or more out.
The other "next move" could come from a suitor looking to buy BXE or merge before BXE gets priced too high. Today's price is very low considering the excellent portfolio of drill sites, continuing growth in fracing technology, NatGas pipes being built to the Asian market, etc. I don't know enough to say it is a good deal, but I do have a feeling based on how easy the JVs were attracted and the intelligence of BXE management. I think enough positives have aligned to interest bigger O&G players.
The debt today makes the current price understandable. The fundamentals of the future are virtually risk free. I have a good feeling.