RE:BUY CPG TODAY! $25 BY JUNE!Snake, just so you know I am not bashing and being negative, I have about 10% of my portfollio in
this one and I manage my own pension so it is not peanuts.
The coporation is never gong to put headlines out about anytying negative about their company but if you read the fine print it is all there.
I do not expect to see $20 plus s.p. on this one soon for the following reasons.
Company is losing money right now and those loses are going to increase until oil makes a signivicat move higher.
Total assets are declining, almost $1 billion in a year.
Outstanding shares have increased by about 7% in a year. When you are losing money you either borrow or put out more shares, just a different heading but same result, it reduces net assets.
And the big reason share price is not following oil price at these levels............CPG has a risk management program that hedges up to 65% of their products over a 3 1/2 year time frame.
Hedges in Q4 were in the $75 range, they drop down to about $70 in Q 1 & 2 2017 and then continue lower. If you factor all that into the bottom line I believe our lower share price these days is just builging into what our 2016 Q4 results are going to reflect when we see it on Feb. 23rd.
My opinion is we will see SP go up up if we see $60 oil but to see $25 per share we are going to have to be North of $75. That could happen but then again we could see them go lower as well. There are too many moving parts in this sector and unfortunately on this side of the globe we do not have very many of the levers that control those moving parts. glta