Opinions Josef Schachter
Bellatrix Exploration Ltd.BXE.TOHOLDApr 07, 2017
Josef SchachterUnknown
$1.05
Stock price when the opinion was issued
$0.38
As of Nov 08, 2019. Market Open.
oilgas
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
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
This had its glory days in 2014 when it was $11.65. It is getting very, very cheap. The street is unhappy because of the debt load, but they have resolved that. There was concern about production and they are in the process of resolving that. He is beginning to think that this is attractive and has it on his watch list. BV is $3.50, so it is one of the biggest discount to BV out there. The balance sheet has been improved. They paid off their bank debt by asset sales. The debt load is now $360 million against $860 million of equity. His NAV calculation is $2.40, which is very good. Producing about 24% liquids and 76% natural gas. Production in the 4th quarter was 32,000 BOE’s a day, down from 40,700 from the year before. What he doesn’t like is that for a company that is that high in natural gas, production expenses are $10.57 BOE in the 4th quarter, and should be in the $6-$7 range.