GREY:TBTEF - Post by User
Comment by
PUNJABIon Oct 15, 2014 4:52pm
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Post# 23031470
RE:Getting Bullish (again) - Here`s Why
RE:Getting Bullish (again) - Here`s WhyThere is no reward without risk. During correction it is very difficult to catch the bottom. It is mostly by chance. In some cases there are few shares that are traded at the bottom.Some buy on the way down. Others wait till the bounce / rebound has taken place so most miss the bottom.
For new money it is a good entry point. Present prices offer good value. The risk reward ratio is very good. If this oil drop is just a dip then you would be laughing.
Becasue of hedging oil prices, reduced diff & declining C $ TBE will be good for a few quarters, becasue only 60 % production is hedged. 40 % will be expsoed to spot prices. Still this company may do bettter than some. I have one concern about TBE ands that is the decline rate of about 30 %. If they can deal with this issue with H drilling then then the company can effectively deal with $80 oil for some time.
Company has a policy of not exceeding 100 % payout ratio. They claim that they will reduce capex if necessary . ( this could mean no growth in production if the prices are weak )