Obsidian Energy
OBE-T
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About Obsidian Energy (OBE-T)
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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.
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.
It could be sold before the end of the year. Results today were not very good. They are looking to sell some of their properties. They have these hedges in place at $50 and the oil price is much higher now. They still have a fair amount of debt. He is happy to hold it. We will see more pieces coming off. It is still high risk due to the debt. This one might get taken over so he holds it.
It could be sold before the end of the year. Results today were not very good. They are looking to sell some of their properties. They have these hedges in place at $50 and the oil price is much higher now. They still have a fair amount of debt. He is happy to hold it. We will see more pieces coming off. It is still high risk due to the debt. This one might get taken over so he holds it.
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.
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.
He is not attracted that much to it because of disgruntled shareholders. The company has shrunk itself since last year. Their focus is to spend less than cash flow. They have other assets they might sell. The balance sheet is in good shape. But he thinks there are more attractive names out there even though this stock seems cheap. This stock needs something to wake it up.
He is not attracted that much to it because of disgruntled shareholders. The company has shrunk itself since last year. Their focus is to spend less than cash flow. They have other assets they might sell. The balance sheet is in good shape. But he thinks there are more attractive names out there even though this stock seems cheap. This stock needs something to wake it up.
(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.
(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.
They have gone through a lot of stress at the Board level but that seems to have cleared up. They have a strong balance sheet, with $328 million in debt compared to $2.17 billion of equity. Their production this year will be about the same as last year. He thinks this stock is cheap, like many of its peers, a humbler reflection of what it was in 2008.
They have gone through a lot of stress at the Board level but that seems to have cleared up. They have a strong balance sheet, with $328 million in debt compared to $2.17 billion of equity. Their production this year will be about the same as last year. He thinks this stock is cheap, like many of its peers, a humbler reflection of what it was in 2008.
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 )
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 )
It hit upon hard times with an extremely highly leveraged balance sheet, but management has kept the company alive. They have significantly de-risked the company but it has shrunk. The balance sheet is very much improved. This is a very high risk/high reward kind of play.
It hit upon hard times with an extremely highly leveraged balance sheet, but management has kept the company alive. They have significantly de-risked the company but it has shrunk. The balance sheet is very much improved. This is a very high risk/high reward kind of play.
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