Opinions
Josef Schachter
Bellatrix Exploration Ltd.
BXE-T
TOP PICK
Apr 03, 2018
$1.530
Stock price when the opinion was issued
oil
gas
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They are more levered towards natural gas. It all comes down to being able to live with the volatility. Anything related to Montney natural gas is betting on LNG, which may not come quickly enough. He would stay away.
oil
gas
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.
oil
gas
This company is 74% natural gas. Book value is $15.67, cash flow last year was $1.12. Current stock price is $1.47 so the company is trading just over 1x cash flow, which he sees as shockingly cheap. This was a $50 stock in 2014. Debt is $397 million against $774 million equity. In 2009, this stock went from $2.40 to $23 a year later. So when a bull market comes, this stock can rocket upward. His one-year price target for this stock is $7. He owns it personally and his family owns it. (Analysts’ price target is 1.75$)