Spyglass Resources Corp SGLRF

RE:What is happening?

[skygarden]

One of the problems here was that Spyglass started up with a lot of unhappy investors.  I remember reading about Winston Churchill talking about Operation Anvil in World War II which was changed to Operation Dragoon because he felt he was DRAGOONED into it.  Some investors also felt they were forced into this merger (the sale of Elbow River was a major factor for me voting for the merger).  I still could not understand why anyone would sell an asset that was already operational, why anyone would sell an asset that was making money, why anyone would sell an asset that was producing income.  It would have been far more prudent to have sold off unutilized assets, unprofitable assets or assets that would not produce any value in the immediate future (this is what they apparently are trying to do now).

The fact that they also reduced the dividend before the company was even started also created a lot of confusion and uncertainty about the company.  Tom Buchanan and company should have realized this with all their experience (they could have stated they would start a dividend within six months ot the merger, or started a dividend at a lower rate--which would have made a lot more sense to me).

Having said that, they are expecting their Q2 results after market closes on August 12--and this could turn investor sentiment toward the company in a more favourable view.  If we follow Joe454's numbers of $85 for oil and $3.30 for natural gas as benchmarks (Joe could you please let me know where this information is--I could not find it) the dividend should be sustainable.  If positve quarter results are given that would put SGL in a very favourable positon in time for the RRSP season next year.  

I would not really be too concerned about the volume as the the summer months do have that effect on many stocks unless there is news from the company.  I still think that the best option is to hold tight for the next few quarters and we go from there.