Bellatrix Exploration Ltd (Canada) BXEFF

Why is BXE so beaten down

[Hendrick3]

I am new to this stock which I bought today. I was reviewing it on the weekend and could not figure out why it is so far down. It is a tiny fraction of book value. It is around d 1/35th of its 52 week high.  It earned money last quarter and it has positive cash flow. Is everyone as astounded as I am by the low price?. I feel like I just found the most amazing deal.

[An1588er]

The company is barely treading water. The payout ratio based on strip prices was 150% but that was in August when Nat gas prices were lower than today. They've also completed a recapitalization transaction at the end of May, which effectively wiped out common shareholders but bought the company time. Their debt is now pushed to 2023 but there is still a lack of confidence whether Management

[Hendrick3]

Yes I gleaned much of what you said from reading press releases and some comments on blogs. I liked your summary very much so thanks. I sold my shares first thing this morning and bought back at end of day which was purely a fluke but this stock has some volatility which I like. I recognize the risk but I believe this sector may be turning the corner so definitely worth a gamble.