BTE is paying back its debtThe first debt repayment is only $700 million due Dec 2020. That's more than four years away!
Lenders have no issues providing extensions to companies that have management that can execute well. And BTE management has done very well especially with the March 2016 renegociation that pushed back payments until 2020. Baytex seems to be one step ahead but for some reason, shorting US Hedge Funds appear to have falling in love with their shorts on 2015 principles. As many have commented, there is a very weak short thesis here. That's why we had the run to $9 months after the debt renegociation. Since that time, oil retreated and so did BTE to this oversold price again.
Facts are that Baytex repayed over $186M this year alone! In one of the most difficult years ever seen on oil. Remember, the low in oil was seen in February with oil in the 20$!
Investors have short memory and all the traders here appears to have a day-to-day or weekly memory. Serious investors and funds have longer term views.
What is clear here is that everyone long and short all want to own BTE shares. Shorts are fueling what appears to be an orchestrated attack on this stock at these lows but that can't last for long.
This is the time to buy, not to sell.