RE:YES Alex & Jon !!! Hands Up BABY !!! Hilarious...these guys are buying a million dollars worth of shares over breakfast and people here are still trying to figure out if this is a good investment.
Cenovus needs to change their business from Oil & Gas to Money Printing Machine. That's what this company does now. Prints millions of dollars a day in free cash flow. It's ridiculous. $75-$80 oil, this will be absolutely insane how much money they will be printing every day.
This company became super lean from the oil crash. That is going to pay off enourmously. I'm in the $90-$100 WTI camp in the next 12-18 months, but oil doesn't need to go up any more than where it is today. As Eric the Nut says, at $70 oil, Cenovus can pay off all their debt and buy back every single share in 5 years. That's how much cash they are printing. This is stupid cheap. The Institutions will start buying again later this year as the yields increase.
I believe the majority of COP shares will be bought by Institutions and possibly Cenovus. I doubt many will sell in the market. COP used that as leverage to negotitate, and if they do sell, it will be at higher prices and better market conditions.