They had over $3 Billion in debt but it is down to $408 Million due to them selling off a lot of assets.  They had to hedge to survive and they all come off in the new year.  The company loses money quarter after quarter, but that could change.  There is huge insider buying.  A major property of theirs came in on time and under budget.

Got propelled from investor activism.  Middle of the pack for him.  He sees moderate leverage.  He has been hung up on the nature of their assets, they are longer in the tooth.  Higher cost operations.  Sees 46% upside at $80 oil and a 27% upside at $70 oil.

(A Top Pick June 8, 2017. Down 13%). Activist investors have gained seats on the board and are having a significant influence on management decisions. He thinks it is likely that the company will sell itself by the Fall, at a significant premium, therefore it looks like a promising short-term play. If that doesn’t happen, he is happy to still hold the stock because he thinks the company is now heading in the right direction.

After their recent conference call, he spoke with management and learned the activist investors have come to an agreement and will defer a 1-for-3 stock consolidation.  He thinks they may sell the whole company and hopefully at a large premium.  Yield 0%.  (Analysts’ price target is $1.77 )

This has been in the news over the last week because a disgruntled shareholder group wants it to do different things. This is the old Penn-West, which was $36 in 2008 and is now $1.33. The company announced that they are putting assets up for sale and looking at otherwise to maximize shareholder value. Their long-term debt at the end of 2017 was 328 million, equity is $2.17 billion with a book value of $4.29. They have a Cardium asset play, which people like. The company is cheap, but there are lots of cheap energy stocks. Do you want to own this particular one? They could potentially be a $4 or $5 stock in the next cycle.

This is the former Penn West, which he bought and lost money on. They have relatively new management (16 months ago). The former Bankers’ Petroleum boss is running it. He thinks a takeover is possible here.  This company has knocked out a lot of debt, which involved selling down assets and because of that revenues went down. However, the company has recently replaced 126% of their resource base. He expects it to grow 5 to 10% (Analysts’ price target is 1.80$)