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NORTHERN BLIZZARD RESOURCES INC T.NBZ

"Northern Blizzard Resources Inc is engaged in the exploration, acquisition, development and production of petroleum and natural gas reserves in western Canada."


TSX:NBZ - Post by User

Comment by Magiaon Jan 31, 2017 6:58pm
127 Views
Post# 25780489

RE:Accounting Tricks aren't going to work.

RE:Accounting Tricks aren't going to work.I don't really understand why you are so negative on the share buyback.

"Accounting tricks"? Share price is calculated by the market value of the company divided by the number of shares. Removing 20% of shares has a direct benefit to share holders.

I understand the concept that you would prefer they spent this on a distressed asset sale. Look around and tell me what assets that they would be interested in have been sold at a significant discount? The truth is most asset sales have retained their value and not followed the price of oil. They got a significant return on none core assets without giving away much from a flowing barrels perspective.

On their last investor call the CEO clearly said that at $40 oil margins were razor thin, at 45 they were making money, at $50 they were making good money and anything over that they were laughing. So it should seem completely plausible that they would be able to fund more wells to increase current production using current cash flows. 

One last thing, the lower share count means a quicker path to raising the dividend again as this buyback also reduces what they payout monthly. Can't wait for the buyback to be over and for the true value of this company to be reflected in the share price.

Magia
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