he uses the guessing model.. and he guessed right. stocks go up, they go down.. if you are long bbva and the company has solid prospects to improve it will go up with time and compound with the dividend.. if you are short you probably made a quick buck and it becomes more risky the more it goes below its tangible assets
this reminds me of many other shale producers that were stretched to the brim financially
if any one trades based on this OP's information then they are idiotic... this is highly leveraged and risky even in the current price environment. This is a true short at these levels... 11M cash 7B debt 2B revolver? When more BK#$%$ the sheets and the bigs start over producing in 50-60 range... that will drop oil prices back to 35-45 easily and shale producers will be hurt again. This is 100% based on saudis slowing down now.
scary valuation this is merely a hedge fund push and short covering.. the valuation is simply not there even from a buyout perspective.
can they hold out? Only time shall tell.
Those numbers are quite frightening despite the low cash on cash cost on the BOE at the debt level... the company has done an admirable job on lowering their interest costs and being effective at managing their margins in this environment. However, valuing this at a 16B market cap is kind of scary considering their true value is only in acreage and reserves that are worth less than 1/3-1/2 depending on commodity prices at one of the more expensive drilling areas in the nation.
CLR did an excellent job in the boom of oil and making the bakken economics work and starting something from relatively nothing... but now... this is kind of scary with CLR and even diversified players at almost pre oil stock highs... the stocks have become highly overbought by hedge funds that are artificially inflating value on things like a dollar weakening trade from the fed... its eerie... and alarming.
hey drone how do you like those 103 prices you paid last week? to the moon?
where have you been? you are all quiet today..