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Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 269,000 gross acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.


TSX:BTE - Post by User

Bullboard Posts
Post by Canoutchieon Dec 01, 2014 8:00pm
387 Views
Post# 23183621

For those with a long memory...

For those with a long memory...... look up a company named Daylight Energy, which I believe used to trade on the TSX with the ticker code DAY-T.  The story played out about 3 years ago.  It was a dividend payer which was hammered 60% for seemingly no apparent reason, yet speculation galore flooded the DAY-T bulletin boards.

Here's my brief recollection of the Daylight story from a few years back.  After trading around $10, a precipitous price plunge occurred in the span of just a few weeks, taking the stock to under $5.  I myself traded out of the stock at $7 (my break even price), as I was unsure what was going on.  Day by day, Daylight's shareprice was hammered mercilessly, on speculation that its debt was too high, that it couldn't afford to pay its dividend, etc. etc.  The shorts piled in, and the momentum continued downward, despite the fact that the company had issued no news to justify such a decline  (albeit in 2011 the Eurozone debt crisis had everyone in jitters).

So what happened?  About 6 or 8 weeks after the precipitious decline in the stockprice, the Chinese swooped in and announced a takeover bid somewhere in the $8 range.  People who bought this stock in the $5 range, following the huge sell-off,  naturally tendered their shares to the Chinese bid... and in the span of a few weeks, yet another healthy Canadian company was scooped up by our friends, the Chinese.

Is this what is happening with BTE?  Frankly, I doubt the Chinese would get behind another takeover bid in a similar fashion as they did with Daylight Energy, especially since Canadian regulatory reviews would not look favourable on a foreign takeover by a state-owned entity out of China.   However, barring any news to suggest otherwise, my sense is that some market-maker is trying to create all-out panic-selling in this stock... forced capitulation, if you will, that will allow someone to come in and sweep up some inexpensively priced shares sometime very soon.  We shall see, so stay tuned!    :-)
Bullboard Posts