RE:Bought 7300 shares todayMuncher wrote
New investor in this company. Strong cash flow bankers must be getting happy or gone soon. Next up cash flow to us. 300m company cashflowing 80m a year sounds like a pretty good deal to me.
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At $90 oil it is more like a $300 million company Free Cashflowing aprox. $110 million per year for a 35% Cash return. Debt has also been reduced from Free Cashflow in the last year by aprox. $120 million. At the end of the third quarter of last year Net debt was at $307 million. By the end of this year 15 months later Net debt should be down to around. $155 million. The huge debt that BNE has struggled with for years is quickly disappearing. $150 million less in debt means much less interest payments which will help debt drop even faster.
Pretty impressive.
I have been keeping an eye on this stock for along time. The main problem was the debt but that is a lot less of a problem now and by year end it will be looking quite resonable. With only $36 million shares out BNE at current oil prices has Free Cashflow of aprox. $3 per share for a stock currently trading at $8.21. That is over 35% Free Cash return.
With these types of numbers todays large drop in the share price i think as you have just downe the time for smart investors to start loading up on BNE shares is here. Lets hope oil prices cooperate next year.
Good luck to all.