Q: why is Batex dropping so much? it used to be over $ 5.7
per share, it was E Nuttal's favorite (of his many)
is it a good entry point ?
now below $ 5
2-3 years hold time span
thanks
Michael
per share, it was E Nuttal's favorite (of his many)
is it a good entry point ?
now below $ 5
2-3 years hold time span
thanks
Michael
5i Research Answer:
The energy sector has rolled over a bit, with a 4% drop this week alone. BTE provided a corporate outlook yesterday, with solid operational performance expected BUT it also lowered cash flow expectations. This disappointed investors. The stock is very cheap and has re-started its dividend, but debt is higher than average and momentum is quite negative currently. We would be OK picking away on the buy side into any further downside, but would see a slow buying approach as best here. It could drift to $4 with some year end selling and that level we think works fairly well for some buying.