RE:Down Again Forget dividend increases. WCP needs to buy back cheap shares and pay down debt. That is the only way that your/our investment isn't going to erode overtime.
Everyone knows these types of stocks are now considered the new sin stock, so a lot of investors are generally not interested. Even fund managers/analysts have even been driven out of this area of investment. For example, how many fund managers/analysts, that specialize in this area, go on BNN and/or how many of the analysts that go on BNN hold/recommend purchasing these types of stock for investment (other than the integrated companies or largest companies)?
So many people have been burned by these oil/gas commodity stocks in the last 7 years that people generally don't even want to touch them. They’d rather go buy momentum plays, like bitcoin, fangs, tech, and others.
Consequently, when oil/gas goes up we have shorters shorting oil/gas stock down, even to all-time low valuations, because it is a guarantee that that oil/gas will also come down, eventually. Many of these stocks don't even get valuation for probable/possible reserves anymore. Production is pretty much the only thing given value.
An approximate %15 decline from the high of $6.82, in the week or so is ridicules.
WCP has been resistant to buy back shares in the past. They bought back a few here and there in the last 3 years, but I think they need commit to it rather than being willy dilly about it. Otherwise, if oil doesn’t keep going up their stock price will erode. This in turn will limit growth opportunites through M&A.
Notice below that between Feb 16
th and March 1
st that 21% of all WCP trades were short betwen this time frame. 15275035 was the Short Traded Volume and $8,5689,965 was the Short Traded Value
There is no new report for the current time frame, but I am sure the volume of shorting only increased in the last few weeks. I speculate that short covering shot the stock up, 6.8X, which only led to more shorting and here we are.
| Security | Company Name | Listing Market | Short Sale Trades | % Total Trades | Short Traded Volume | % Total Traded Volume | Short Traded Value | % Total Traded Value |
| WCP | WHITECAP RESOURCES INC. J | TSX | 33858 | 23.312 | 15275035 | 21.502 | 85689965 | 21.603 |