TNEYF - Seven Generations: Why I Sell At The Money Puts
Seven Generations (OTC:SVRGF) released the Q4 earnings and the 2019 guidance.
Even with depressed Canadian liquids prices, the company operated at a profit thanks to better U.S. gas prices. And management confirmed the profitability threshold corresponds to a WTI price at about US$50/bbl.
Considering the similarities with Tamarack Valley (OTC:TNEYF), I compared both producers. The valuation of Seven Generations is more attractive.
Also, the market values Seven Generations at a discount to my estimation of fair value. Selling at the money puts is an opportunity to get shares at a cheaper