RE:Here is the jig with Bankers.......
Once again, great analysis, dbeaude. Thank you.
Based on your calculations,is that not the problem with Bankers?. There is nothing to get excited about. Consistent growth over the next few years, is truly phenomenal, however, it also means the stock continues to flounder.
Let's put ourselves in the shoes of an institutional investor or mutual fund. Based on your cash flow analysis, if a mutual fund invests today they can expect to make a 20% 3 year average return. Not bad, however, does that compensate them for the risk?. Based on current market price, I would say NO, it does not. They could just as easily invest in Crescent Point Energy and earn a 7.3% dividend and a capital gain of 4-5% per year and not have to take the risks associated with Bankers.
So what is the solution?. Sorry to repeat myself, but they must team up or partner in order to ramp up production. Going from 20k boepd to 30k-35k boepd in 2014 and possibly 50K in 2015, would create excitement and institutional interest.