Post by
MoatsInvestment on Apr 05, 2016 4:36pm
additional insights
As an investor or M&A Spread investor the two risks you might be facing are the deal won't go through (it is VERY unlikely that BNK or Geo walks away). The second risk is that the price of oil changes SIGNIFICANTLY in a way that changes the value of BNK assets (I assume this would be the case if oil trades below $20). This being said, the management team has done it's due diligence (over few months) and thinks this is the most valuable offer. I wish we all vote in favor of the deal (and I am not related to BNK management, am just a shareholder)
Comment by
jollynik6 on Apr 05, 2016 5:12pm
Have to agree Moatsinvestment,although there are days I have to question my sanity for even playing the oils,by the way whats anyones feeling on PRE can not believe the volume.
Comment by
braincloud on Apr 05, 2016 6:44pm
Oil has a rip PRE will be a HR,otherwise it's dead. Have a look at their balance sheet and you will answer your own question!
Comment by
jollynik6 on Apr 05, 2016 7:46pm
YOUR PROBABLY RIGHT BRAINCLOUD,have looked at the financials,what a mess+,but how do you explain the 10 mill per day trades,figure with your experience you could provide me with what you think is going on, Still long BNK and was foolish enough to buy some PRE,
Comment by
braincloud on Apr 05, 2016 8:27pm
I don't follow it. I looked at it briefly,but like all the rest that have a huge debt load they are eff'ed if oil doesn't have a move. So if you have a crystal ball and it works then just avoid those names and stick with good balance sheets if you want to play the oil turnaround. Raging River and Canecol and even Africa Oil looks to be a good if and when. I'm in no hurry.