RE:Management Top notch I bought a starter posistion today. My reasoning being as follows:
1) Love the Board of Directors. I hold PPY and RMP, and I wish I had RRX. All three of those companies run a tight ship and I doubt they would associate themselves with anything that wasn't legit.
2) Low Debt. In this enviroment debt is a killer.
3) Assets. The Exoro acquistion brought a great deal of land into the company, which is good. The Cardium assets are the cream of the crop with the well results being top decile. The Killiam asset is boring, but cheap to exploit and with waterflood and infilling can creat a nice stable production base. The Belly River play is interesting. The best part is buying now you get everything for what was paid for just Exoro.
My concern is:
The management team. Lots of the guys like Bailey and Drall have been involved with duds like Pinecrest and Hyperion. I'm willing to give them the benefit of the doubt cause they will have support from the best, and hopefully they learned from being associated with those wrecks.
The gameplan I would guess is to complete the work that was forecasted for Q1, rollback the shares, hopefully the volume stays up and we continue to appreciate. Once the share count is around 25 million and share price at $2.80, and debt at 9 million or less, they will go shopping for some distressed assets to bolt onto what they have. Then if and when oil swings up we will have enough land, and quality assets to be a top growth name.