Advantage Energy Ltd T.AAV

From the blogosphere -Eric Nuttall

[loonietunes]

Eric Nuttall

 

@ericnuttall

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3m

 

As the energy market looks beyond COVID to a pandemic free world in 2H'21 no chart better demonstrates how profoundly mispriced energy stocks are than this one.

 

[maurizion]

He has it as the absolute worst of the bunch?

[Maxmoe]

It is mathematically dishonest to use "strip" prices for nat gas, but use $60 WTI with a $10 WCS spread . Of course the oil names will look cheaper when you use 20% higher than reality oil prices. The opposite exercise would be to use "strip" prices for oil and $3.00 Henry hub gas prices. The relative positions on the chart would be inverted. If you are a bull use $60 wti and

[barneyj44]

Thank-you for the clarification Maxmoe appreciate that.

[moric122]

In my opinion, someone is playing games around AAV with an acquistion in mind. Whomever it is needs AAV at a low enough level compared to the acquirer (BIR/TOU etc). At about $2.6ish a share AAV is an accretive acquistion to BIR... That said winter projections on temperature were super weak last week. Weather projections starting to look much better in the favor of gas. I think the challenge for

[Golddetector]

I do agree and I think management is not doing much for shareholders and eventually someone will takeover at fraction of its value. Change is needed.

[Cheadle12]

I've been saying it for some time, but every time I do, fools on here call me ignorant. You have to look at insiders buying.. and Andy Mah doesn't buy his own shares.  If there is a merger/buyout, then he will know if it's going to be for a paltry premium.. insiders know best.

[Golddetector]

If it happens, it is not going to be a friendly one because that will cost a lot considering the bv of the company so I do not think management will know. It is going to be a hostile one maybe with a premium of its current mv with a deep discount maybe around 3$ to 3.5$ per share. Ceo will still walk away with good money considering his 1.5 million shares.

[Wildcattter]

This post has been removed in accordance with Community Policy

[Cheadle12]

Because $150M in cash flow means very little. It's all about FREE cash flow.   AAV sit at the lower end of the names that generate meaningful FCF. So it probably makes sense to sell into bigger hands.

[Golddetector]

We trading around 2 now. So how much more ppl will pay for it? If a bigger company buys this they can make Ton of money bcz of low operating cost 80 millions/yr. including management pay how much is management getting out of that you can save all that so maybe 75 is more reasonable. That is why if you chk this against its peers it shows up as the cheapest it has nav .4 bv .3 debt very low and

[Cheadle12]

you need to lay off the booze bro..

[Wildcattter]

This post has been removed in accordance with Community Policy

[mrmomo]

That's about one of the worst pieces of media trash pump & propoganda i've seen in quite some time in Canadian mainstream . Isn't this guy suppose to be neutral & non bias with his views & opinions on the sector and his info towards investors? Seems to me that he and his Vc fund trolling company Nine Pricks is just out to push THEIR HOLDINGS as the best investments and pump

[Cheadle12]

Wow.  I didn't know Advantage was the worst of the bunch? How come it's the worst of the worst?  Even high debted Baytex and MEG are better?