One of the Cheapest Stocks in Canada [2nd attempt]EDIT: [couldn't get the image urls to link in the last one]
Ran a TMX money screener for fun today, on the following variables:
1) Exchange = all CDN exchanges
2) Price >= $0.25 / share
3) volume >= 10k / day for 10 day avg.
4) Price to tangible book ratio >0; < 2
5) Price to cash flow >= 0
6) Price to FCF >= 0
146 results out of those criteria.
BNE ranks 7th from the bottom when ranked on Price / Book (1st pic).
BNE ranks 8th from the bottom when ranked on Price / Cash flow. (2nd pic)
FCF is skewed due to lumpy capital spend so far (q1 and q3), no i did rank on this metric.
They are the lowest company on the list in both rankings that pays a yield. Notice the bottom ranks are occupied by mostly small cap energy names, all which are in materially worse financial shape than BNE.
This stock does not deserve to trade at 1/4 of tangible book, and below PDP NAV at current strip. It has been reduced to optionality simply because no one cares about cash flow directed towards debt reduction. But the company is producing between 35-42mm (depending on EDM and AECO) FCF, or nearly 40% FCF yield. or, 2.5x Normalized earnings. It's absurd.
I see a lot of posters bashing here because they are not happy with the share performance. yea, well neither am , welcome to the stock market. It can be irrational to the extreme. TCK-B was a name i made a lot of money on almost 4 years ago, that was pushed from 20-3, then back to 30, all within 18 months.
Obviously none of that made any rational sense, but all a value investor can do is try to capitalize on this dislocation with entries on names like this when they are far below intrinsic value.
There is enormous upside to this name going to unfold over the next few years as debts and deividends normalize. Just follow Fink's lead, and forget about the haters on this baord that try to chastize and marginalize you because your position is underwater.
Yea, for now... they said the same thing on TCK boards to me 4 years ago. Guess where those posters were 8 months later when it crossed 30? Right.
1st pic
Screen on Book value 2nd pic
Screen on Cash flow