Bellatrix Exploration Ltd (Canada) BXEFF

RE:price to book

[puma1]

josef schachter talks about the book value of this stock a lot as well. he has it as a top pick in his November picks - $7 target based on their assumptions that it will be close to $1 a share cash flow.

puma1 wrote:
this is trading now at about 12% of the book value so they are basically valuing the assets at zero which does not make sense given their costing structure. ..................... we can presumably expect an asset write down of a large size for the year end given this price to book............. nonetheless, the debt covenants are all income /ebitda tested and there does not appear to be any tangible net worth test. if there is a write down that hit to equity does not allow for a call of the notes or restrict assess to other debt.............. but the market is pricing this as though the debt will get called or 50% of the total $1.4 billion of assets will be written down at year end....................................................... I suspect we are oversold !!!!!!!!!!