COS doesnt need pumping.Don't listen to silly pumpers and b/s over take over rumors about COS. The stock long term value will out weight a cheap under priced take over any day.
The list of energy producers who can survive indefinitely with oil flirting with $40 per barrel is pretty short. But there are plenty with the balance sheet strength to make it through this current rough patch.
Although Canadian Oil Sands has more than $2.3 billion in net debt, thats not a whole lot when you compare it to the companys assets, which are approximately $10 billion. The company also has a $1.5 billion credit facility it can utilize, and doesnt have any major debt repayments due until 2019.
Its also doing a nice job cutting costs. In 2014 Canadian Oil Sandss operating cost per barrel was $49 per barrel. In the first quarter it was $36 per barrel, and the company expects costs to be $39 per barrel through the rest of 2015. That means the companys breakeven costs are about $49 per barrel once all the expenses are considered, which isnt much higher than current prices.
Plus, capital expenditures are slated to be cut back significantly this year. Add in the savings the company has after cutting the dividend, and it looks to me itll be able to survive even if this environment persists. All investors need to do is be patient and wait for oil to go back up, and Canadian Oil Sands should go up with it.
Proven reserves of 50+ years. Yes last time oil was this low, COS was trading at 20$ +. Why is that? Recently there was many upgrades down at Syncrude that in the long run will pay off financially. Don't listen to GroupGuru who loves to dispear when oil goes up. This is a long term hold. This stock will be a multi bagger.