Post by
sportstermathew on Jan 14, 2021 9:38pm
Quality and demand / lack of selling are driving price
While the whole industry had a sell order on it from the Hedge Funds all the way down to ZIP, the reverse can be true now.
I don't think they will come in to buy at the same vengence they were selling at but if prices keep rising then PEYTO WILL BE BACK ON THE INDEXES probably, and have to be included in many many funds etc.
I am not sure of the timing of this but it is not years.
Any kind of demand right now is forming the foundation, and lack of selling is allowing for short/quick upside.
A majority of trades may be daytraders in and out, in and out. It is easy to buy a stock constantly moving up and trading it but everyone that sold at $3.40 then $3.60 may not have a chance to get back in if it heads to $4.50 then $5 and so on.
Will it get ahead of itself, probably, hopefully but if the drilling capital spending program keeps ramping up and quickly as Peyto has everything in place, rigs, supplies, contracts, expertise, land, pipelines, plants you name it already on the spot as they were only doing about 60% to keep everyone active and in jobs, going to 80% or 100% is probably very easy.
I see $7 to $12 just in market dynamics, then they will have to prove themselves and build production, have better pricing in place, get rid of bad contracts and have outside influences help out while getting closer to the NG Generation deal, and LNG down the road.
I bought more today, I don't care about the price if it drops, hoping to buy more down the road. At some point I will reduce a few shares at a time at every level as it rises. $20 to $30 range.