It never ceases to amaze me...........how a stock can appear invincible and mighty one week and weak as a lamb the next despite the fundamentals of the company not only remaining but steadily improving. Bankers could not get enough love with millions of shares purchased over $4. Now it is being sold off like Taci arrived at their office with AK-47's and a barrell of smirnoff for the takeover celebration!
The hedge funds screw with the commodity sectors and likely have shorted anything that smells like oil especially those that smell like heavy oil. I honestly cannot believe how pathetically undervalued Bankers is verse Baytex. Almost the same reserves, a larger resource, only twice the shares and trades less then 10% ($3.70 verses $41) of the Baytex price. Bankers is much better off having only one fifth of their debt level and having over a third of their production. Bankers has twice (yes twice) the reserve life at 35 years verses 14 and a net back that is $6 a bbl higher!!!
BUT HERE IS THE REALL KICKER.....ENTERPRISE VALUE/2P RESERSES .....BANKERS TRADES AT JUST OVER 4 TIMES AND BAYEX AT 22 TIMES.....WWHHAATT!!!!
If Bankers was trading at just half the valuation of Batex is would be $8.50.
My point here is the downside risk should be extremely low verses Bayex but the management of the company has taken no steps to get the message out to the market.
I am NOT pumping folks just stating valuation comparison facts to acentuate the fact that Bankers is a very good investment even at $95 Brent but the traders love to play with this stock and management has to do something to get their company off of the traders radar screen (like Baytex)....perhaps a 6% dividend would do it!