Opinions
Gerald Allaye-Chan
Obsidian Energy
OBE-T
DON'T BUY
May 29, 2009
In the past 5 years they have been a very active acquirer. His concern is their fairly high debt level. Depleting reserves by about 40,000 barrels per day and to replace will be expensive.
$15.270
Stock price when the opinion was issued
oil
gas
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
HOLD
A takeover candidate? He was wrong with this. He recently moved it from a buy to a hold. It's high-risk and high-reward, has "danger" written across it. He likes the idea of a takeover, but doesn't know if it'll happen. This could be a good play in oil/gas with a lot of potential. He hasn't sold it, but at the same bankruptcy remains a real possibility.
oil
gas
DON'T BUY
New interim president and CEO. Pretty good numbers on cardium wells. Issue is the debt. Debt is 22% of equity, but it's going the wrong way. Declining production and volumes. Not as attractive as the others. Need to show they can grow core numbers of the cardium. Guidance is negative. Capex is about equal to cash flow.
oil
gas
PAST TOP PICK
(A Top Pick Oct 22/18, Down 88%) He sold at $3.22, taking a big loss. They have a lot of worries. They are looking to sell the company. They might just liquidate the company, but clean up could be very expensive. He does not like stock consolidations and used that as a trigger to get out. He would not buy this now. He made a mistake -- when debt came down, so too did revenues.
oil
gas