RE:RE:Some Profit TakingThe moment OBE showed indications of finding a new level, you know some people were going to sell some of their position, hoping they could buy back cheaper later that day or week.
The moment it started to give gound, those people were going to sell.
There may also be some wanting to short, hoping for a short term profit.
That is what day traders do.
The thing to watch is what happens next. Are these shares absorbed by insitutional interest? Is the mid $6's to mid $7's the new range for the next material event? Is that the range that willing sellers and willing buyers find equilibirum for a while? Time will tell.
Is a billion dollars (current approx enterprize value) a fair market price for all OBE's assets and its $2.5+ billion in tax pools? If yes, then expect it to hold here. If not, then this is a step towards a higher number.
One thing for certain, its a lot easier to place 200 million in long term debt when the market value of your equity is $600 million (and that means better terms on the debt).
What are your guesses for 2022 Cap ex?
They may be forecasting $400 ish million in funds flow for 2022 (their forecast for Q4/21 was $88 million or $352 annunalized, with the extra Prop included for just 6 weeks). How much do you think they want to spend on captial expenditure? It was $127 million at first last year? Do you think it will be $150 million this year? What does it cost to run 1 Prop, 1 Pem, and 2 WG rigs for 9 months? These questions may be answered on Jan 24
ps, a funds flow to enterprize value multiple has been popluar with analysts for the last few years. Plug in an average multiple and see where that puts the share price - thats probably what at least one analyst will be doing on Jan 24, with results (aka new target price) released Jan 25