you can see this from the balance sheet.. lol. and they explained their debt on the conference call.
carry bloated debt loads to finance their drilling operations that look “oversized and unsustainable” at lower oil prices, Debtwire analysts
Bennu Oil & Gas
Black Elk Energy
Forbes Energy Services*
Try an obvious short squeeze and data showing book value at $15 dollars a share with prime property. I am hoping for another major pull back to add, but doubtful unless year end tax selling takes over.
Sentiment: Strong Buy
Bottom support was mid $4's. Looks like the next support level is going to be the high $8's to low $9's. If it breaks through $10, the next level is near $12. These support levels are critical especially if this is truly oversold. The stock is on the verge of going black for the first time ever. The hedging will dramatically reduce the short term impact of lower oil pricing. From a BV perspective, going black often results in market pricing near BV or slightly above it. Shorts have taken their profits in the oil biz and it appears they may be on the long once again. Double digits are highly likely by the end of January for PVA.
It's looking like a nice inverted H&S formation. Looking forward to the next few weeks.
You might as well copy and paste your statement, you'll be using it quite a bit on the way up.
Several days ago I bought in at $5.07 and immediately sold the January $6 calls for 49cents to reduce my per share cost to $4.58. If PVA closes over $6 on January 16th, I'll be out with a 31% one month gain. Under $6 and I will likely add more as I expect at least $7.50 sometime next year. My exit will depend on the price action as well as how the markets are holding up which as you know can change from day to day. I think you will make money here or at least not get crushed at this level. Merry Christmas and good fortune to all.
Sentiment: Strong Buy
No exit for me. I bought a few shares for L-term. A gamble? Yes, but a calculated one. Also bought crk at 5.99. Seems like heavy selling is done and if you are willing to take the headline risk in 1H15, this could turn out ok. No one truly knows where oil is going, but looking at the clf5 charts, seems like oil has a chance to hold at $54-55. If so, and the price recovers some, all the negative is priced in. If not, I am wrong. You make money by taking on risk (I sold some Trp for this trade). Have bought a lot of offshore drillers in last two months. 1/3 of all oil in world is extracted from underwater. Biggest future oil fields will be underwater. Also, Cuba may now be a play for offshore drilling (Florida does not allow offshore drilling due to tourism concerns even though oil is there- I co-own a secondary rental coastal property in Miramar Beach so I am okay with that-Panhandle FL beaches are most beautiful in America).