Response to Mickey questions on YGR The degradation in price of YGR since 2018 is largely a story of value destruction at the well head. They spent a lot of money drilling, prices cratered especially in natural gas, wells depleting faster than expected and they ended 2020 with very high debt for their levels of production. They still have plenty of analyst support but they don't seem to have regained market support. They were expected to build momentum in 2021 with the rest of the sector and were but their 3q production numbers indicated they were floundering still at the wellhead. Their very large short position is a testament to a loss of belief in the company.
it appears in 4q, they are turning it around and based on drilling updates from Kavern, they appear to be lining up for a good 2022. This creates the perfect positive price scenario.
- the company is turning it around
- they are the most undervalued
- prices and the sector are hitting new highs
- short position is huge and they will need to cover
it should give us a quick 50% return in the short term but as always do your own due diligence.