RE:One to watch!!!!Agree, this is now below 0.10 pre consolidation. The recapitalization was terrible for existing shareholders (which is why I sold my position in mid April for a tax loss), however for new shareholders its a different situation. Debt was reduced by $110m, debt extended to 2023, Cash Interest payments reduced by 12 million. On of the most efficient Operators in the Western Canadian Sedimentary Basin... Risk of bankruptcy has been reduced considerably. From the recapitalization transaction news release, "In connection with the implementation of the Recapitalization Transaction, Bellatrix has extended the revolving period under its senior secured bank facilities (the “Credit Facilities”) by one year with the term-out period expiring one year after the end of the revolving period, in each case pursuant to a second amended and restated credit agreement (the “Second Amended and Restated Credit Agreement”). Under the terms of the Second Amended and Restated Credit Agreement, the revolving period under the Credit Facilities will expire on May 30, 2020, and is extendible annually thereafter at the option of the Company, subject to lender approval. As part of the renewal of the Credit Facilities, the borrowing base under the Credit Facilities has been reconfirmed at $100 million (unchanged), with total commitments set at $90 million."
Book value per share almost $100, Morninstar gives 5 star rating, with a fair value of $3.88. As I've mentioned before, there's no way this is only worth $1.14. You also have to consider, this was trading at $8.00 in January. I feel this is worth a minimum of $2 (the second lien note warrants can be exercised at $3.03 per common share) but will be much more this coming winter... Would like to see some insider buying at these levels.
I added to my position today and will be adding until the end of summer at or below $1.45, or 0.12 pre consolidation price on a weekly basis. At these levels, this is a steal.