RE:RE:Block trade - payment in shares I have to agree that long term of oil stays high the purchase looks good , but these deals take time and don't add instant gratification like using that money for a extra divvy or a dividend increase.
We bought the block at 6.95 per share. Just a guess and we will never know the seller but possibly from another deal previous where shares were used. Then they issued 15 M at 7.05. Hence the company that got these 15 million shares could sell them slowly to gain a 10 percent AC profit and gain 10.5 Million more dollars ?
The wierd thing is I didn't see the volume today. So doest suggest dumping ? It's just a thought and if I did a deal like this and got 15 M shares. Possibly I dump enough to cover some taxes who knows and keep some for a higher price. I am just trying to figure out why we are held back under 8. Does not make sense. My hope is once we break through 8 we see a meaningful climb.
Back to the deals they did ......... these deals are for the longer term and I like buying production in this environment, your raising production but nothing adding barrels to the Overall combined Canadian numbers so not hurting things with over production. The play here is the price of oil staying at a certain leval and at these levels we are looking very Smart.
What I don't like relates to what I said in a earlier post amd that is that sinking feeling that this sector has given me from the stress over the last 3 plus years. You worry and I can't be the only one that something happens that changes sentiment to the down side before we are rewarded for this purchase.
So here is my prognosis....... is if we can hold strong with oil prices for another 2 months or go strong into a earnings release. We are going to hit and we will hit strong amd climb to 12 plus dollars. Just think about the o production they added. We had 68 k a day in producing not long ago. Yes we have a higher share count but the last deal alone improved value per share 10 percent at 65 dollar oil. The problem is these are the correct numbers on paper but doesn't or won't equate to share price until it's reflected in a earnings report. Seeing is believing.
Hate to say it the guy who sold some shares and kept some who posted yesterday. Was right about a few things. We can though disagree on his selling price point. A one time dividend would be nice and might produce a bump , and it would a bonus for me and you the long term holder. A increase to the monthly dividend will the real mover of the share price, but you not so much.
If we keep these numbers with the price of WTI and the discounts aren't to crazy we are going to have the quarter of quarters and we will have our day. I love this sector it is always interesting but I would be lying if I didn't say I always worry about getting screwed buy something that changes the trajectory of the price of oil . That being said I don't see anything that's going to cause
a Drop below 60 dollars in the coming year . I would of said 65 but everything always over shoots hence the 5 dollar buffer
Hope you enjoyed my rant . I will leave enough with
this ......... don't believe anything I say or write and do your own research it's fun , and finally I wouldn't still own if I didn't think we are going to have our day and it's above 10 dollars .
Good luck to you all
Choo Choo Craig