Bonavista Energy Corp BNPUF

RE:On the Bright Side...

[grantsta]

IMO this stock will recover when the debt is paid off and the the dividend is brought back. 

Don't worry about oil prices.  They are self-correcting; we know that over time they will return to a band where disciplined developers can make a reasonable profit.

Instead worry about whether management will be one of those disciplined developers, or whether they will chase price spikes with borrowing to financial massive capital growth.

Not to mention, most of the revenue is from natural gas.  Even if the stock trades short term on oil prices, on the long term it must trade on the revenue, and that's much more NG based.

Consensus seems to be that BNP has good management.  I expect if nothing drastic changes, we would see a dividend increase within 2 years, and then hopefully small but steady increases regularly after that.   That's assuming management keeps capital spending within revenues, and picks carefully to ensure the capital spending is accretive.

If something drastic happens (namely:  a jump or a spike in the price of NG) then things could change.  But based on projected trends of NG powering more and more electrical production, I am comfortable with a very steady path for pricing.