Post by
Fuzman5902 on Sep 30, 2021 10:04am
Houston we have a problem
Until recently Meg has held up extremley well to it's peers, as of a couple weeks ago a disconnect has started to appear.
Take a look @ CVE it's been on a real tear as of late & the percentage comparision that i use is widening more than i would like.
This probably isn't a fair comparison as CVE is was so undervalued.
Meg isn't the only Company in hedge jail while I'm not familiar with the old ARC hedges I do know VII had 30% of C5 hedged in the 45 range & 50% of their gas @ 2.50.
Awfully hard to justify a Target market cap of 727 X 16 + 2 Debt 3.60 a share = 13.5 Billion
WCP has a 40% higer market Cap but minimal debt
I realize there are lot's of under performing companies out ther for various reasons but the main thing that stands out for me is debt
Including the 125 Million in debt repayment Meg still has $ 8.60 per share in debt
I may be totally out to lunch but it's looking very llkely, not only is the market taking the hedging into consideration but the excessive debt compared to other companies.
I have no concerns about the debt being taken care of eventually but in the meantime the less leveraged companies will perform better.
Morning Rant...lol
Regards Fuz
Comment by
Eigen337 on Sep 30, 2021 10:49am
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Comment by
Eigen337 on Sep 30, 2021 12:22pm
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Comment by
riski on Sep 30, 2021 3:24pm
If oil stays here or highter, MEG will definitely trade higher than CVE. A big part of the current share price is a discount for the high debt level. CVE also has a fair amount of debt after the HSE deal, but nothing like MEG.