RE:RE:RE:COS sp up in early trading, all other downI hate to ruin the party but I think people get optimistic way too quickly. COS came down from $12 a month ago,and the bearish momentum was especially powerful last week. This might just be a technical rebound. The industry parameter and assumptions are no different than what it was a week ago; actually the EIA data continues to show an upward trend in production.
Baytex (BTE.TO) just proposed a round of equity financing with a small 9% discount. But the fact that they need to do equity financing means their interest coverage is not the sharpest, and the debt convenant is likely tieing them up from getting more debt. You might think I went sidetrack, but I am exactly referencing BTE as a Canadian comparable Oil & Gas E&P company to COS, for which they are quite similar in market cap.
On a related note, Praxis please use some data to back up your view of COS's strong balance sheet.... Have you took a chance to look at the 2014 annual filing available on SEDAR as of Feb 25? I went through them and made a thread about the poor numbers, especially on the balance sheet. The cash & cash equi. deterioration, the increased current portion of LT debt... etc.
I hope people are taking some serious due diligence here because in a few weeks COS is going move, no doubt. Short a butterfly spread (long and short friendly) or run a skewed straddle towards the lower strike price (shorters).
Good luck COS investors.