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Bullboard - Stock Discussion Forum Bonnett's Energy Corp T.BT

TSX:BT - Post Discussion

Bonnett's Energy Corp > Cheap stock
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Post by valuedude1 on May 19, 2013 12:16pm

Cheap stock

I agree with most on this board that this company is a hidden gem. I have been going through their Q1 report and have come out with the following facts.

SP: $4.90

MKT Cap: $71m

BV: $5.38

P/BV: 0.91

Current ratio: 2.14

Quick ratio: 2.07 (assuming inventories of $917k)

Long term debt: $5,715,000

debt to equity: 0.3

ROE: 16.31%

P/E: 6 (TTM)

Sales/share: Q1/13 $2.24 vs. Q1/12 2.36% ( -5%)

Div yield: 5.71%

Question: Does anyone know exactly what happended to their cash? Why did it decrease from $7m to $45k. I know they repaid $4.5m of bank debt but what happened to the other $2.5m?

Anyway, this company is dirt cheap. I hope the stock comes back down to $4 so I can load up. This stock can easily go up or down based on the fact that its not liquid. I will say though, that I am extremely worried about the price of oil. I have been reading a lot of bearish reports out there. 

I feel comfortable owning BT here as I am getting almost a 6% dividend and the corporation is buying back shares. Its a win/win for shareholders, if the stock goes down the company will buy shares back and increase my ownership. 

Any comments?

GLTA

Rob

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