Twin Butte Energy Ltd TBTEF

RE:RE:RE:Stock being capped ? Low volume

[PUNJABI]

One has to be very objective to make money. There is no perfect stock. All stocks have strengths & weaknesses.

Some of the issues that you have pointed out are very valid & any prudent investor has to acknowledge it & has to take them into account in their investment equation. Most regular visitors of this board have read your same warnings many times.  Do some research & add new negative comments so that we can benefit from it.

 Everyone has a different time horizon & looks at an investment in a different way. A short seller & a long term share holder can be both right & make money from the same stock. It all depends on their timing.

The market is aware that the company has repeatedly missed because of issue with wells & weather. There is a concern about the payout ratio & decline in line of credit based on the reserves. Still there is a huge cushion. The stock has been punished for it & that is why it is trading at the present share price. Most of the issues have been priced in. The stock has underperformed in the sector because of poor execution. The company has lot of positive things too which the market is ignoring because the jury it out, the company is in the penalty box  & some investors are on the sideline. It is not a total doom & gloom situation or a dot com company.

Some of energy stocks have doubled recently. There are times when you cash out & rotate out of stocks which have done very well and are trading ahead of themselves. You also have to be careful of high flying stocks because they can come back & bit you hard if you have bought them around the top.   Sometimes it is prudent to walk away from them & look at depressed stocks because they might offer better value & may have little downside & lot more upside. Investing in depressed stock at the right time gives more bang for the buck instead of chasing high flyers.  One has to ensure that the depressed company is fundamentally sound & it is only a time factor.

In stock market I have seen a lot & one should be prepared for everything. Every stock has a downside even the high flyers. The whole sector could tank.  But based on the present information available. I think that TBE is a fair bet with relatively little downside unless they mess-up again & with lot more upside. Time could be a factor. Eventually they will get their act together. The assets have value they need good execution. I think that this stock is investable for me & if it happens to be stuck in a range then one can still make money from the dividend & swing trading the range. I love range bound stocks. Lot of damage was done to the share price. Stock is in the process of consolidating it needs some time. 

Cautious investor can wait & when the outlook improves they can pay a higher price to buy the stock. The level of reward is higher when you take a higher risk.