Paramount Resources Ltd PRMRF

Ink Research published that the shorts have returned to pou

[WillyGreen]

Let me understand the rationale behind the short position. Received 3.3b cash, disposed of $1b Aro ($300-500m npv), nva still on the balance sheet (500m +\~)  so net net roughly 3.8b cash plus removal of  liabilities of $300-500m. Shorts giving pou credit of roughly $5 per share for 30000 bpd post transaction rising to 47000 by year end 2025; 60000-67000 bpd by year end 2026.  Hmm. Now add Sinclair, former Koch lands and still $1b on the balance sheet. Wow they must be on to something! Buying it up all day and twice on Sundays while I'm at Church. Pain trade.

[MyHoneyPot]

My thinking for POU is this, 27 dollars a share in cash/equities and their paying out 15 dollars. That leaves 12 dollars a share on the balance sheet.  Jim Riddel - running the company add 5 dollars a share 12 dollars a share residual after payout. There is your 32 dollars a share evaluation. The richest oil and gas faimly in Canada, with the best assets in the country..  Trump knows

[Quintessential1]

So why is the VP of operations cashing in options?   Filed 2025-01-06 14:49 Tx date 2025-01-06     $POU Paramount Resources Ltd.   Reid, David Blake 5

[MyHoneyPot]

Because everyone deserves a pay day, and they have their own tax planning and personnel finance siturations to consider. I also myself have been buying because i know POU has many things on the go, but they just keep them quiet.  When you invest in POU, you have to come to terms with the fact that a lot of the big deals in Oil and Gas are not even publically known.  They are done at

[Quintessential1]

Yeah but he didn't exercise options and hold, he exercised options and sold. He has to know that he has a $12 tax free ROC per share coming regardless given the strike price of the options. Also as VP of operations I have to think he has access to those "on the go" deals that are not "publically known".  He is under no obligation to sell his excercised options which

[WillyGreen]

If the $12 return of capital puts his acb in a negative position, he is paying capital gains on that whether he sells or not. Just as an aside, I would place no emphasis on the trades of the executives at Pou other than Jim. I've seen executives sell  all along the way yet I was buying. They are  always worried about diversification (other than the Riddell's) getting a paycheck

[WillyGreen]

Quinte - as a follow up, and for whatever the information posted on X is worth, Mr. Reid now owns 86470 shares. 

[Quintessential1]

Thanks Willy and FWIW that info is available on this site on the insiders tab. I still think Mr.Reid is better off tax wise holding those shares unless they are in a registered account. And that it's a weird optic at this time. GL Fellow Investor. ;-)  

[WillyGreen]

Nothing to worry about regarding the new pou post -transaction. 

[WillyGreen]

Let me qualify that last comment. Fundamentally the new pou will be a beast. Nimble. Cash rich. Growing. Commoditiy prices/macroeconomic conditions etc will affect all E&Ps but maybe less so for pou given its pristine balance sheet. 

[WillyGreen]

Quinte - hard to say without having access to all the details. I would note that the options price says $3.84. A $12 return of capital may have put Mr. Reid in a negative acb position and capital gains. Better to sell at that point. 

[Quintessential1]

Yes depending on the ACB of the existing shares in the account that he exercised his options in he could trigger a captial gain.  However, I am pretty certain that the sale of his exercised options triggered a larger capital gain anyway unless they were exercised in a registered account making the tax implications/benefits moot.  Hence I think I just answered my own question but thanks

[MyHoneyPot]

Trading in Church?