RE:RE:RE:m & aI get you JD. I was not happy and did not tender my little pony stock to CNQ when they swooped in and bought PONY for peanuts. True, you can find comparable names but it just happened "opportunistically " versus being bought out at the peak. Or even mid cycle. Buyout was 69 cents. Nva was about the same price then. Now $8. Pony today would easily be $5. A big Homer Simpson DOH!
JohnnyDoe wrote: BayStreetWolfTO wrote: Good evening JD, I have thought about this and for some companies it is a possibility especially in areas of mutual interest. Baytex also talked about possible neighboring acquisition if it made sense.
That said my expectation is the deal would be completed at a premium and there are so many undervalued small and mid cap that you could redirect the windfall to those. The only question would be if a company had upside property potential greater than the premium. Someone asked me the other day if Whitecap was a buyout target (I hold that also)...if it was I would gladly take a premium and spread the funds.
Another point is the deal would have to make sense for the buyer i.e. do they operate in the area/do they have a land position in the area etc. If they don't I think (in my opinion) shareholders prefer returns from the big guys versus taking that cash to "buy" production.
Certainly something to keep in mind. Back to WCP if they were bought out I have many others I could spread the money too. The joy of Canadian Oil and Gas are there are so many undervalued plays and the big guys can't buy them all (or so I think lol)
JohnnyDoe wrote: I've been reading lots of articles recently on m & a possibilities in the oil patch. Frankly this has me a bit nervous. I have two large caps. But I don't want any large caps swallowing up my mid caps over the next 18 months. You'll get a premium over say the last 30 trading days as is typical but that's undervaluing the shares.
I'm starting to lean heavily towards dividends as opposed to buybacks to have a more immediate impact on share price to ward off large cap suitors. Thoughts on that?
appreciate the replies and the sentiment from the board to move the money elsewhere in the sector. That's the pure non emotional response. The right one two for that matter. I actually expect some consolidation in the Clearwater play. I have BTE , TVE and HWX in Clearwater and I expect to see some moves for more average in the play. If TVE or HWX gets bought, take your money and move along. But with CPG and BTE, I'll feel ripped off lol. So much upside. WCP is another one Wolf where if it gets bought, you move, no issues. Idk, there's just some companies that I cheer for which is probably not a good thing as an investor