RE:RE:Border Tax is the problem here!!!casino_royal wrote: stkfather2 wrote: I've harped on this issue for some time, while everyone is focused on financials.
The problem with the stock price has to do with the border tax proposal. IF and when we hear that energy is exempt, then blue sky ahead. If it passes then we are doomed, if not already, since the market thinks it will come to fruition.
The tax is absurd at best and here's hoping ithat it will be dropped!!!
what I don't understand is 50% of Baytex oil is produced at eagle ford, so they should only be half exposed to the border tax if it comes thru fruition. The debt has been there when this was trading at $8-$9 last year, but because were down under $5 everyones negative. Oil prices are at a stand still, it gonna make a move soon hopefully to the upside. cheers
If the Canadian operations were faced with a 20% border tax BTE would have no choice but to bankrupt the Canadian operations as they cannot run profitibaly at all or even close with a 20% tax on its oil. Eagle ford would do just fine in the US however.