Profit taking isn't surprisingStill a lot of risk that this flushes back down in the future due to another round of game playing... I'm hoping we are passed this...
Got an email fom : Warren Kaplan <warkap@gmail.com>
I'm not saying he is a reliable source, but maybe this is what pushed the price up?
"My sources indicate that the company is going to sell the Peace River operations to BTE. That will set OBE up to merge or sell the company at a price far above the current market price. The current value of OBE is $61.2 MM, which is far below even CAPEX for 2020.
Several years ago, French felt the company was worth at least $800 MM CDN. This was when he was in a bearish mood. That translates to $600 MM US. Back then, I had seen values in the $1 ½ - $2 Bil, US. Based on the current 72 MM shares O/S, the value of the company per share is in excess of $8.00 US if we accept the French $600 MM US value and approximately $24.00 US on the higher valuation.
The force of our bloc paid no small part in making things happen. With just 4 months before the voting cut-off date happening, the Board finally did something right. Mr. Faust can now devote his full time and energy to his other company.
Since Mr. French’s evaluation, the Canadian government has finally decided to build the necessary pipeline to the oil fields which will reduce transportation costs and allow Canadian oil companies to earn more money.
I intend to keep the bloc informed and to stay together. Personally, my family have been a buyer in the last few days. This is in spite of our policy to only buy dividend paying stocks. This has allowed us to reduce our average cost from $57.00 a share to $18.00 a share and we are looking to accumulate more. Please keep me posted on any changes in your holdings.
I will get you news as soon as possible in the future."
I'm thinking that a disposition of Peace River would be a great way to delevarage and give the company extra breathing room. But on another hand, I really don't think BTE is in any financial position to be acquiring assets... They are in better shape than a few years back due to their merger, but to spend for the acquisition of Peace River would be IDIOTIC... On top of it, OBE's Chinese partners have refused the sale of the asset to a more capable partner just a few months ago... Why would they be okay with BTE as a partner???