RE:RE:Shorts...PPP if management was too follow these short sight/temp moves...YGR would be bankrupt.
I remember in the fall of 2019 saying on this board that share buybacks are a massively bad idea for YGR (at this point in time of YGR lifecyle). Just picture if YGR would have done the sharebuyback and then Covid happens and oil and gas prices hit the sh*tter.
WE WOULD HAVE BEEN F*CKED. YGR would have been issuing shares at 50 cents (if lucky) last June if we would have borrowed money in fall of 2019 to do that sharebuyback.
Management has to build this company for the long term and not short term price spikes to please a few shareholder.
The reality is Covid price damage last year was always going to impact IPO, OBE, YGR, and BNE for at least 4 quarters...q3 2020, q4 2020, q1 2021, and q2 2021.
After we see Q2 for all of these companies do we really know where they all stand.
YGR was 90 cents in early february and is 1.30 now. We are going to need some days too pass with these higher oil and gas prices.
An easier way exists to blast the shorts but I don't think YGR should do this.
YGR could always do what BNE is doing. Drill a pile of really cheap shorter 1 mile wells instead of 1.5 and mostly 2 mile wells. Short 1 mile wells really allow a company to jack up production fast for maybe 90-100 days and then they drop really fast.
But over the long term...longer more expensive 2 miles make more economic sense and less wells to reclaim.
YGR has make decisions like they are going to be around in 2022 and on.
I would rather have YGR FCF 8-10M this quarter on 9500 BOE then produce 11000 BOE and FCF 2M.
The market wants to see FCF this quarter...that will sizzle the shorts.
Getting 10 FCF and annualized debt to CF ratio of under 2 to 1 is how you sizzle shorts and keep them away.
ppp wrote: The shorts are just playing the hand they are dealt. IMO management is loading that hand. The problem with these guys is, they don't use their listing to their advantage. With the right NR the share price could be at 2. At that point they could do an issue and get their debt down to 150 mil. This would allow them to spend all CF on production. moving the share price up, win win.
We have some of the best NG and oil prices in a long time and these guys are dropping the ball again. Thats why I find it hard to blame the shorts.