GREY:BNPUF - Post by User
Comment by
Donhowon Apr 07, 2020 12:20pm
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Post# 30886919
RE:I was about to give up on BNP and humanity
RE:I was about to give up on BNP and humanityI bought bnp in 2018 thinking that a cold winter would boost gas prices which were near zero. Winter 19 was one of the the most miserable and sure enough the gas price increased. So what did bnp do? Shut in their gas because it was too cold! They were supposed to reduce debt,but instead they increased debt and cut the dividend( not by half or something to keep the funds on board). So they are buying assets now which are a good deal. Only trouble is that the lenders are going to get 10 times the shares for about 200 million of debt. Management knows this and will get new options or whatever tax free bs is available so they will be fine. Shareholders will get nothing. Anyway I bought at 1.23 sold at .53 and feel lucky. This one will go down the same toilet as bellatrix. If the gas price goes up bnp will be hedged at a penny above break even to keep cash flows down or shut in production because the sun is out.