Opinions Mason Granger
Bellatrix Exploration Ltd.BXE.TOCOMMENTNov 06, 2014
$5.02
Stock price when the opinion was issued
$0.38
As of Nov 08, 2019. Market Open.
oilgas
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COMMENT
Debt concerns? BXE took bankruptcy protection when debt became too much. There is no equity value in it any longer. Companies that have debt that matures in 2020 or 2021 will have issues. He sees no issues with BIR or TVE on this topic. The new Federal relief program for large companies may be difficult for companies to accept as it has provisions for up to 15% of ownership being made available in warrants to the government.
Josef SchachterUnknown
oilgas
PAST TOP PICK
(A Top Pick Jun 18/18, Down 94%) The whole thing about low energy prices and the debt restructuring meant the stock got beat up. He will be adding to this position. People need to see that they can service the debt and then see the price of nat. gas firm up.
Josef SchachterOwned
oilgas
COMMENT
BNP and BXE Both are carrying high levels of debt. BNP-T has been paying down debt and will try to keep production flat. He intends to buy more of both. BXE-T will be doing a 12:1 reverse split on the shares sometime in June.
Josef SchachterOwned
oilgas
PAST TOP PICK
(A Top Pick Apr 03/18, Down 80%) Problem is trying to renegotiate the debt due in the next year or two. So it had to do a restructuring and massive dilution of shares. Still generating cash flow. Sees upside. Could be a $1 stock a year from now. He's going to be adding. Likes management.
Josef SchachterOwned
oilgas
PAST TOP PICK
(A Top Pick Feb 12/18, Down 57%) Under one times cash flow. People are worried about their debt, but he does not see a problem. He likes the company. It is a gift. He bought more.
Josef SchachterOwned
oilgas
PAST TOP PICK
(A Top Pick Jan 15/18, Down 76%) Every 10 cents adds one point five million bucks. The market is worried about the balance sheet but it is very low in valuation. When these stocks take off, they really take off.
Josef SchachterOwned
oilgas
TOP PICK
They are going to do well in 2019. It is trading at half of one times cash flow. If we get positive swings they could do terribly well. They are working with debtors to extend terms. He thinks they will have success and the stock is a giveaway. He is looking for a 10 bagger in five years. (Analysts’ price target is $0.66)
Josef SchachterOwned
oilgas
PAST TOP PICK
(A Top Pick Dec 18/17, Down 63%) All the natural gas stocks have been suffering. All of these companies have debt loads and suffer at these prices. But storage is coming down rapidly. The next cold spell will drive gas prices up. Be bought stock last week. A year from now all three of these names should look really good. They have positive cash flow because they have firm hedges.
Josef SchachterOwned
oilgas
DON'T BUY
He's been short this. The balance sheet is very impaired. It needs to reorganize. The assets themselves are fine, but they went on a buying spree and now carry a lot of debt. This has lagged its peers in recent years. A bankruptcy is possible.
James HodginsOwned
oilgas
PAST TOP PICK
(A Top Pick Nov 09/17, Down 66%) This is a very cheap stock. This company has the ability to ramp up production significantly. They are NOT going under. The book value is about $11. He keeps on adding to the position. It will be double digit within 3 years.
Josef SchachterOwned
oilgas
Has been a Top Pick previously, but doesn't own it currently. Great track record of growing production to the tune of 30% a year on a production per share basis. Has done it on fairly modest leverage levels. A mix between oil and gas. Struck some very novel joint venture deals with a number of counterparties that has taken a long life resource and accelerated some of the future value to the current day. The issue he has is that they have become a victim of their own success. The tremendous growth rates they have had have now caused some fairly serious facility constraints. There are a number of pieces to the pie in terms of gas plants that are getting built and compression that is getting added. You can probably count on a certain amount of uncertainty about what the next 2 or 3 quarters are going to look like until the middle of 2015 before those issues are behind them.