Sometimes it is necessary to show people how stupid they are/were Because at the time they won't listen until the knife falls. And hopefully they learn something and stop pumping without knowledge.
OH! great answer. I'm sure there are at least 4 hours of research U did to arrive at your well thought out answer. You must be a VP at Raymond James.
I'm sure as of today ATHL owners R doing the money dance. And by the price of ECA, maybe ECA shareholders need to hire some bloodsucking lawyers.
He states $3.5 billion of income without clarifying. That was a one Time thing as a result of selling NG assets at a nice profit. However ECA pizzed away that cash /profit on ATHL purchase. Second he refers to a less than a forward 10 PE. Well that's ain't going to happen now that oil dropped 45%. Third he mentioned ECA has a strong balance sheet with great cash. Like I mentioned cash was pizzed away on ATHL. AND, Now ECA is spending cash to honor OIL PREMIUM drilling contracts for 2015 (while others are cutting back on capex) that will drain/weaken balance sheet. He also completly ignores the sophistication of the market that drove the price of ECA stock down 50% in a short time period.
$35-$55 won't cover fixed /sunk costs. U know, depreciation, A&G, return on equity. At $45 or even $55 ECA will record a book loss, at best a profit of a few pennies. Like a PE of 40 plus.
If, and that's a mighty big IF, it hits $70, it won't double. Just curious, how do your figure? Now if it hits $90 plus oil, then maybe a 65% increase. Like I mentioned, that's a MIGHTY BIG IF!