RE:RE:Post by masfortunamasfortuna wrote: And that's the point Lee. Nobody, and I mean nobody knows with certainty what the market will do. They can give you an idea what the market "should" but when these same blokes lose track of 200 million barrels...Well you get the picture.
mas
I kind of separate it into two distinct things and I've questioned one of them on this board for some time. The first thing is the supply demand equation which is tilting towards demand out stripping supply. It's real. And there is no short term solution. The second thing is market reaction. The market is severely undervaluing cdn oil.
The supply demand equation will result in serious fcf coming our way in 2022/23. But, at least in my view, share price is going to remain undervalued unless the market starts looking more favourably at cdn oil. I certainly expect share prices to rise, but in Baytex's case, I'd say right now that the difference between an unfavorable view towards oil versus a favourable view might be as much as 2 bucks a share, a number that will only increase as fcf grows.