RE:RE:RE:Athabasca has huge potential lol...they should hire you to do IR at ATH
The issue with ATH is the cost structure. The company has high fixed costs/low variable costs, giving high operating leverage.If oil stays strong and continues to rise (or even stays at current levels), this stock should out perform alot of the light oil names.
At the same time, this is a terrible stock to own during an oil crash, due to its cost structure (and the share price reflected that reality for most of last year, along with the financial results)
If you think that WTI stays above 60, buy or keep holding...If you don't think WTI can maintain current levels, dump it.
fellowship wrote: Hendrick3 wrote: There is no question ATH has upside but relative to other players in the sector they are premium priced. It's the relative valuation that is causing them problems because although they will go up, they may not have as much bounce in them as other undervalued players. Look at their market cap of $225 million and do some comparisons with other companies that actually produced cash flow in 2020 and paid down debt despite a tumultuous year. Yes ATH will eventually go up but others may be better bets for greater upside.
The other players are relative premium priced as well. It is relative for a reason.